Europe's online source of news, data & analysis for professionals involved in packaged media and new delivery technologies
Blockbuster hires law firm for advice on possible bankruptcy
Financial service Bloomberg reported late on Tuesday that Blockbuster, the world’s largest movie-rental chain, hired law firm Kirkland & Ellis "to explore a possible bankruptcy filing." Blockbuster stock fell as much as 86% yesterday before trading was halted. However, the shares doubled Wednesday after the company denied the bankruptcy filing report.
According to sources quoted by Bloomberg, the law firm was asked to evaluate restructuring options for the company, which may include a “pre-packaged” or “pre- arranged bankruptcy.” Blockbuster has also hired investment bank Rothschild to advise it on restructuring.
With more than 7,500 stores in the US and 22 other, Dallas-based Blockbuster - burdened with $300 million in debt due in August - is facing harsh competition from mail-order movie rental service Netflix.
Story filed 04.03.09
More Articles...
