Blockbuster Stays Afloat For Now
New deal for Dallas chain
Published at 4:56 PM CDT on Mar 19, 2009 | Updated at 5:15 PM CDT on Mar 19, 2009
Blockbuster lined up new financing to give the struggling video rental chain more breathing room as it tries to adapt to ever-fiercer competition from the Internet and cable services.
The Dallas-based company announced the refinancing Thursday along with its fourth-quarter results.
Blockbuster said it lost $360 million, or $1.89 per share, in the three-month period ending Jan. 4, primarily because of charges to account for the diminishing value of its 7,500-store franchise.
Revenue fell 12 percent to $1.38 billion.
Despite the tentative refinancing agreement, Blockbuster said it expects its auditor to issue a warning about the company's ability to remain afloat.
Copyright Associated Press / NBC 5 Dallas-Fort Worth