Blockbuster Says May File for Bankruptcy
DALLAS (
) --
Blockbuster
(BBI) - Get Report
, the video rental chain, said it could be forced to file for bankruptcy if cash flows don't improve and it's unable to restructure its debt.
Blockbuster's debt load has been reported to be as high as $1 billion.
"These factors raise substantial doubt about our ability to continue as a going concern," Blockbuster said in a filing with the
Securities and Exchange Commission
.
Blockbuster said "increasingly competitive industry" conditions have hurt its operations. Blockbuster reported a fourth-quarter loss of $434.9 million, or $2.24 a share, as same-store sales fell almost 16%. Competitors such as
Netflix
(NFLX) - Get Report
and
Redbox
have taken market share.
Blockbuster shares fell Tuesday by 2 cents, or 4.1%, to 40 cents.
-- Reported by Joseph Woelfel in New York.
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