Blockbuster on the brink

Last time we ran a story on Blockbuster’s slide into collapse, it was early July, and the company had just been de-listed from the NYSE for their stock being valued at less than $1 (it was $0.18 at the time).

A couple months later, and here we are with the company readying for a mid-September bankruptcy. In Chapter 11, the Blockbuster hopes to close 500-800 stores, and get out of the leases for the corresponding buildings. Bankruptcy would also give the company a breather in paying interest on its $920 million debt. The money saved would go toward growing the staggering behemoth’s kiosk and internet rental services, the two sub-industries currently bludgeoning Blockbuster to death.

If all of that doesn’t completely satisfy your schadenfreude itch, now hear this. The company’s stock sits at $0.11, and Blockbuster’s market value is $24 million. Former owner Viacom bought Blockbuster in 1994 for $8.4 billion.

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