Blockbuster Posts Loss Ahead of Auction

NEW YORK ( TheStreet) -- For all the excitement generated this week about possible bids for bankrupt Blockbuster ( BLOAQ.PK), the company reported a dose of sobering reality today.

For the period ended Feb. 27, Blockbuster posted a loss of $68.4 million, while generating $274.8 million in revenue, according to a filing.

Gross profit totaled $154 million, but this was offset by $183.5 million in general and administrative costs, $11 million in depreciation expenses and $3.2 million in advertising costs. The company also spent $16 million related to its bankruptcy and restructuring.

The release comes as Blockbuster's auction is set for April 4. Reports surfaced earlier this week that Blockbuster may receive an unexpected bid from a South Korean wireless communication company.

The news generated excitement, providing a sign that there may still be interest in the struggling movie rental chain.

Last week, the company said it is looking to terminate the leases on 187 locations.

--Written by Jeanine Poggi in New York.

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