The BigScreen Cinema Guide Now Showing The Marquee Gift Shop Search Help
 
Have an Account? E-Mail Address Passcode
| Register Now
Blockbuster Goes Into Chapter 7 Liquidation - 609 Stores to Close by February 28, 2011

Posted on Tuesday, February 22nd, 2011 3:52 PM by Scott Jentsch

Bloomberg is reporting that bankrupt video rental chain Blockbuster Inc. has agreed to be bought by its creditors for $290 million.

The group, called Cobalt Video Holdco LLC, which holds more than half of Blockbuster’s $630 million in 11.75 percent senior secured notes, made no commitment to continue the business. A provision in the agreement gives Cobalt the right to compel a conversion of the Chapter 11 reorganization case to a Chapter 7 liquidation. The contract also calls for Blockbuster to begin closing 609 stores by Feb. 28. The group can also compel a liquidation of the inventory at any stores it doesn’t elect to take.

Cobalt plans to buy all Blockbuster assets and its U.S. and international subsidiaries, according to the statement. If the plan is approved, interested bidders are required to submit binding offers within about 30 days following court approval. A final sale is expected to close no later than April 20, the company said.

Click the Read link below to read the full article.

This certainly doesn't bode well for those that like to go to a local video store, but with Redbox units in so many locations and the convenience of Netflix for both discs by mail and streaming, the likelihood that we'll not see the familiar blue and yellow Blockbuster signs for much longer may not have as much sting.



Add Your Comments

Reader VoiceReader Comments

No comments found. Be the first and let us know what you think!

Add Your Comments

Warning: Please login
Commenting on Journal Articles is available only to our readers who have customized this site, which makes it easier for you to complete the form and for us to contact you with any questions or concerns about your comments.

Please login or register a new account before continuing.


Already Registered?

Log in to retrieve your saved settings.

E-Mail Address:
BigScreen Passcode:

Forget Your Passcode?

Send My Passcode To Me

Not Registered? Create a New Account!

E-Mail Address
In case we need to contact you. A valid E-Mail address is required, profiles with invalid addresses will be removed.
Please Confirm Your E-Mail Address
ZIP Code
This helps us display theaters that are near you.

Our registered members enjoy more features, including:

Basic accounts are free -- sign up today!

Concerned About Privacy?

So are we! We won't sell, trade, or share your personal information with anyone unless required by law. For more information, please read our Privacy Policy.



Home - About Us - Ad Info - Feedback
Journal/Blog - The Marquee - Movie Links - News and Events - Now Showing - Reader Reviews
Customize - VIP Service

The BigScreen Cinema Guide is a service of SVJ Designs LLC. All graphics, layout, and structure of this service (unless otherwise specified) are Copyright © 1995-2014, SVJ Designs. The BigScreen Cinema Guide is a trademark of SVJ Designs. All rights reserved.

'ACADEMY AWARDS®' and 'OSCAR®' are the registered trademarks and service marks of the Academy of Motion Picture Arts and Sciences.