This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Blockbuster Nears Bankruptcy

NEW YORK ( TheStreet) --

Blockbuster (BLOKA.PK) may soon be put out of its misery.

According to The Wall Street Journal, a Chapter 11 filing could come any day this week.

The company is in its final stages of preparing the filing, which could arrive as soon as today but most likely Friday or next week, the Journal reported.

The article also notes that Blockbuster will try to continue operations but will shutter 500 to 800 more stores on top of the 1,000 it was already planning to close.

The one-time king of video rentals has steadily lost market share to Netflix (NFLX - Get Report), as well as Coinstar's (CSTR) Redbox kiosks, and has been trying to play catchup in the digital world.

Blockbuster is saddled with nearly $1 billion in debt and is scheduled to repay $42 million to creditors on Sept. 30. The company has already pushed back the payment twice.

Shares of Blockbuster are plunging 23% to 6 cents on over-the-counter trading. But Netflix stock is surging on the news up 4.8% to a new high of $154.22.

Reports also surfaced last week that billionaire investor Carl Icahn holds about one-third of senior debt, which would give him veto power in any restructuring plans.

--Written by Jeanine Poggi in New York.



>To contact the writer of this article, click here: Jeanine Poggi.

>To follow the writer on Twitter, go to http://twitter.com/jpoggi.

>To submit a news tip, send an email to: tips@thestreet.com.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
NFLX $558.40 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%
TSLA $218.42 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs