Blockbuster - Another High St store in administration
Discussion
anonymous said:
[redacted]
They closed 25 last year...https://www.talktalk.co.uk/news/business/article/2...
Edited by Pothole on Wednesday 16th January 14:48
From Wiki:
On February 10, 2010, Blockbuster announced that it would cease all its operations in Portugal, closing down in the process 17 outlets and leaving over 100 workers unemployed. Blockbuster representatives in Portugal blamed Internet piracy and the lack of government response to it as the key factors to the company's bankruptcy in the country.[27] By March 2010, Blockbuster was in talks of selling its European operations altogether, but would not disclose the details.
On March 1, 2010, Blockbuster began "Additional Daily Rates," or "ADRs," for rentals not returned by their due date in the United States, having already used this procedure in other countries such as the UK for many years. An "Additional Daily Rate" was charged for each day a member chooses to keep the rental beyond the rental terms.
On March 12, 2010, PricewaterhouseCoopers, Blockbuster's independent registered public accounting firm, issued its audit opinion disclosing substantial doubt about Blockbuster's ability to continue as a going concern. This report was included in Blockbusters's 10-K SEC filing. On March 17, 2010, Blockbuster issued a bankruptcy warning after continued drops in revenue threatened its ability to service its nearly 1 billion dollar debt load.[28]
By April 1, 2010, Carl Icahn had resigned from Blockbuster's board of directors and sold nearly all his remaining Blockbuster stock.[29]
On May 2010, Movie Gallery began to liquidate, leaving Blockbuster as the only remaining national video rental chain in the United States.[30] During the same month, a dissident shareholder, Gregory S. Meyer, in an effort to be elected to Blockbuster's board of directors, engaged in a proxy battle with Blockbuster's board alleging that the board has been responsible for significant destruction of value to shareholders. Mr. Meyer was elected to the board at Blockbuster's shareholder meeting in Dallas, Texas on June 24, 2010.
On July 1, 2010, the company was delisted from the New York Stock Exchange after its shareholders failed to pass a reverse stock split plan aimed at heading off involuntary delisting due to the share price trading well below $1 per share.[31] The stock then traded on the OTCBB (over-the-counter bulletin board).
In addition, Blockbuster was unable to make a $42.4 million interest payment to bondholders and was given until August 13, 2010 to pay off the debt. The company hired Jeff Stegenga to be its chief restructuring officer (CRO) in an effort to satisfy bondholder demands and recapitalize the company. After failing to pay on August 13, bondholders gave Blockbuster until September 30, 2010.
On August 26, 2010, news media reported that Blockbuster was planning on filing a pre-packaged Chapter 11 bankruptcy in mid-September. In light of this news, the company's chief financial officer (CFO), Tom Casey, resigned on September 11. He was replaced by Dennis McGill, formerly CFO of Safety-Kleen Systems, Inc.
On September 22, 2010, a source close to Blockbuster announced they would be filing for Chapter 11 in a few days time. It was carrying some $900 million in debt.[32]
On September 23, 2010, Blockbuster filed for Chapter 11 bankruptcy protection due to challenging losses, $900 million in debt, and strong competition from Netflix, Redbox, and video on-demand services. Blockbuster lagged behind these competitors in online rentals, Redbox-style kiosks, and streaming video.[33] Movie Gallery/Hollywood Video had filed for Chapter 7 bankruptcy liquidation earlier in 2010 for similar reasons.[34]
At the time of Chapter 11 filing, Blockbuster said they would keep their 3,300 stores up and running;[35] however, the company was expected to close over 900 stores by the end of 2010.[citation needed] In December 2010, Blockbuster announced it would close an additional 182 stores by the end of April 2011 in attempts to emerge from bankruptcy.[36] It was reported in February 2011 that Blockbuster and its creditors had not come up with a Chapter 11 exit plan and that the company would be sold for $300 million or more, along with taking over debts and leases.[35] Blockbuster has stated that there is the possibility that they may not be able to meet financial obligations required under its Chapter 11 filing, a circumstance which could mandate conversion of the bankruptcy filing to Chapter 7 (liquidation).[37]
On March 1, 2011, the U.S. Department of Justice filed a claim disclosing that Blockbuster does not have the funds to continue reorganizing and should liquidate.
In April 2011, Blockbuster's landlords objected to its assumption of leases that it seek to assign to soon-to-be-owner Dish Network Corp., saying among other things, they did not have adequate assurance that the new owner would honor those leases.[38]
On August 31, 2011, the liquidators announced the closure of the remaining 253 Canadian stores and wind up the entire Canadian unit.[39]
On March 28, 2011, South Korean telecommunications company, SK Telecom, made a surprise bid to buy Blockbuster.[40] Dish Network had also expressed interest in bidding; as did Carl Icahn, despite calling Blockbuster "the worst investment I ever made."[41] Dish eventually won the auction on April 6, 2011, agreeing to buy Blockbuster for US$320 million.[42] On April 19, 2011, it was announced that Dish would only keep 500 Blockbuster stores open. At its peak, Blockbuster had more than 4,000 stores nationwide.
In April 2011, Dish Network told the U.S. Bankruptcy Court that it needed more time to negotiate with landlords in an effort to keep more than 600 Blockbuster stores open.[43] The deal was finalized on April 26, 2011.
On Friday, January 13, 2012, Dish CEO Joseph Clayton announced that while Dish originally planned to keep 90 percent of the stores in operation (roughly 15,000 employees got to keep their jobs), due to market factors Clayton says he still wants to keep the Blockbuster chain going but, “there are ones that aren't going to make it. We will close unprofitable stores. We will close additional stores.” Clayton did not say when these additional closings would happen and only remarked that some stores were not turning a profit. The Dish chief would not say which stores the company was planning on closing, but that they were looking at each potential closing on a “case by case basis.” Some districts are reporting that over half of their store operations have been notified that they will stop renting on January 23, and will accept rental returns from January 24 until doors shut mid February.[44]
On February 10, 2010, Blockbuster announced that it would cease all its operations in Portugal, closing down in the process 17 outlets and leaving over 100 workers unemployed. Blockbuster representatives in Portugal blamed Internet piracy and the lack of government response to it as the key factors to the company's bankruptcy in the country.[27] By March 2010, Blockbuster was in talks of selling its European operations altogether, but would not disclose the details.
On March 1, 2010, Blockbuster began "Additional Daily Rates," or "ADRs," for rentals not returned by their due date in the United States, having already used this procedure in other countries such as the UK for many years. An "Additional Daily Rate" was charged for each day a member chooses to keep the rental beyond the rental terms.
On March 12, 2010, PricewaterhouseCoopers, Blockbuster's independent registered public accounting firm, issued its audit opinion disclosing substantial doubt about Blockbuster's ability to continue as a going concern. This report was included in Blockbusters's 10-K SEC filing. On March 17, 2010, Blockbuster issued a bankruptcy warning after continued drops in revenue threatened its ability to service its nearly 1 billion dollar debt load.[28]
By April 1, 2010, Carl Icahn had resigned from Blockbuster's board of directors and sold nearly all his remaining Blockbuster stock.[29]
On May 2010, Movie Gallery began to liquidate, leaving Blockbuster as the only remaining national video rental chain in the United States.[30] During the same month, a dissident shareholder, Gregory S. Meyer, in an effort to be elected to Blockbuster's board of directors, engaged in a proxy battle with Blockbuster's board alleging that the board has been responsible for significant destruction of value to shareholders. Mr. Meyer was elected to the board at Blockbuster's shareholder meeting in Dallas, Texas on June 24, 2010.
On July 1, 2010, the company was delisted from the New York Stock Exchange after its shareholders failed to pass a reverse stock split plan aimed at heading off involuntary delisting due to the share price trading well below $1 per share.[31] The stock then traded on the OTCBB (over-the-counter bulletin board).
In addition, Blockbuster was unable to make a $42.4 million interest payment to bondholders and was given until August 13, 2010 to pay off the debt. The company hired Jeff Stegenga to be its chief restructuring officer (CRO) in an effort to satisfy bondholder demands and recapitalize the company. After failing to pay on August 13, bondholders gave Blockbuster until September 30, 2010.
On August 26, 2010, news media reported that Blockbuster was planning on filing a pre-packaged Chapter 11 bankruptcy in mid-September. In light of this news, the company's chief financial officer (CFO), Tom Casey, resigned on September 11. He was replaced by Dennis McGill, formerly CFO of Safety-Kleen Systems, Inc.
On September 22, 2010, a source close to Blockbuster announced they would be filing for Chapter 11 in a few days time. It was carrying some $900 million in debt.[32]
On September 23, 2010, Blockbuster filed for Chapter 11 bankruptcy protection due to challenging losses, $900 million in debt, and strong competition from Netflix, Redbox, and video on-demand services. Blockbuster lagged behind these competitors in online rentals, Redbox-style kiosks, and streaming video.[33] Movie Gallery/Hollywood Video had filed for Chapter 7 bankruptcy liquidation earlier in 2010 for similar reasons.[34]
At the time of Chapter 11 filing, Blockbuster said they would keep their 3,300 stores up and running;[35] however, the company was expected to close over 900 stores by the end of 2010.[citation needed] In December 2010, Blockbuster announced it would close an additional 182 stores by the end of April 2011 in attempts to emerge from bankruptcy.[36] It was reported in February 2011 that Blockbuster and its creditors had not come up with a Chapter 11 exit plan and that the company would be sold for $300 million or more, along with taking over debts and leases.[35] Blockbuster has stated that there is the possibility that they may not be able to meet financial obligations required under its Chapter 11 filing, a circumstance which could mandate conversion of the bankruptcy filing to Chapter 7 (liquidation).[37]
On March 1, 2011, the U.S. Department of Justice filed a claim disclosing that Blockbuster does not have the funds to continue reorganizing and should liquidate.
In April 2011, Blockbuster's landlords objected to its assumption of leases that it seek to assign to soon-to-be-owner Dish Network Corp., saying among other things, they did not have adequate assurance that the new owner would honor those leases.[38]
On August 31, 2011, the liquidators announced the closure of the remaining 253 Canadian stores and wind up the entire Canadian unit.[39]
On March 28, 2011, South Korean telecommunications company, SK Telecom, made a surprise bid to buy Blockbuster.[40] Dish Network had also expressed interest in bidding; as did Carl Icahn, despite calling Blockbuster "the worst investment I ever made."[41] Dish eventually won the auction on April 6, 2011, agreeing to buy Blockbuster for US$320 million.[42] On April 19, 2011, it was announced that Dish would only keep 500 Blockbuster stores open. At its peak, Blockbuster had more than 4,000 stores nationwide.
In April 2011, Dish Network told the U.S. Bankruptcy Court that it needed more time to negotiate with landlords in an effort to keep more than 600 Blockbuster stores open.[43] The deal was finalized on April 26, 2011.
On Friday, January 13, 2012, Dish CEO Joseph Clayton announced that while Dish originally planned to keep 90 percent of the stores in operation (roughly 15,000 employees got to keep their jobs), due to market factors Clayton says he still wants to keep the Blockbuster chain going but, “there are ones that aren't going to make it. We will close unprofitable stores. We will close additional stores.” Clayton did not say when these additional closings would happen and only remarked that some stores were not turning a profit. The Dish chief would not say which stores the company was planning on closing, but that they were looking at each potential closing on a “case by case basis.” Some districts are reporting that over half of their store operations have been notified that they will stop renting on January 23, and will accept rental returns from January 24 until doors shut mid February.[44]
dandarez said:
We have one here in Cameron Town, so he'll probably spout how sad it is.
Think I went in there once - gotta be over 15 years ago.
Surprised so many jobs (4,000) at risk though.
Never heard of Rileys...
got a blockbusters in Clapham... huge place (at least a big tesco local size)... 6 staff on most times and not a fThink I went in there once - gotta be over 15 years ago.
Surprised so many jobs (4,000) at risk though.
Never heard of Rileys...
king soul in there renting or buying stuff.As for Rileys, I used the one in Hull, but didnt know they had any in London.
DonkeyApple said:
BoRED S2upid said:
Amazon takes another scalp!
To be fair I think the reality is that they've been given another scalp rather than taken one. This was yet another hideously badly run business saddled with massive debt.BoRED S2upid said:
DonkeyApple said:
BoRED S2upid said:
Amazon takes another scalp!
To be fair I think the reality is that they've been given another scalp rather than taken one. This was yet another hideously badly run business saddled with massive debt.http://www.blockbuster.co.uk/bandsignup/start-tria...
I dont want them to send me a movie in the post, I want it now... Blockbuster didnt evolve into a partly online media streaming service, therefore who have they got to blame?
Most people are online now and those that are not can use a postal system like lovefilm too.
Just a legacy shop that thought it could survive.
I can't say I'm in the least bit surprised.
Blockbuster's entire business model is pay-per-view on demand films. The physical media is just a storage & transport medium to allow that. You can now do that just as easily with streaming over the internet as NetFlix / LoveFilm / Sky On Demand have demonstrated. So what is the need for expensive bricks & mortar buildings with all the staff, rent and business rates that entails?
Quite frankly it's amazing they have lasted as long as they have.
Blockbuster's entire business model is pay-per-view on demand films. The physical media is just a storage & transport medium to allow that. You can now do that just as easily with streaming over the internet as NetFlix / LoveFilm / Sky On Demand have demonstrated. So what is the need for expensive bricks & mortar buildings with all the staff, rent and business rates that entails?
Quite frankly it's amazing they have lasted as long as they have.
Edited by JonRB on Wednesday 16th January 15:26
Adrian W said:
Radio yesterday saying the hedge funds are going for WH Smiths and DSG, so reckon one of those will be next.
Dixons wouldn't surprise me at all - after all, they're pretty much an over-priced, redundant dinosaur these days, with much cheaper prices online, and much better service at John Lewis.WH Smiths, on the other hand, I would've thought was a pretty decent business model still? Yes, you can get some magazines and stuff in supermarkets, but only a fraction of the choice. They always seem to be packed when I go in?
Kermit power said:
Dixons wouldn't surprise me at all - after all, they're pretty much an over-priced, redundant dinosaur these days, with much cheaper prices online, and much better service at John Lewis.
WH Smiths, on the other hand, I would've thought was a pretty decent business model still? Yes, you can get some magazines and stuff in supermarkets, but only a fraction of the choice. They always seem to be packed when I go in?
WHSmith are probably kept buoyant by the sheer number of kiosks at train stations. The ones in town appear confused as to their purpose and sell all sorts. WH Smiths, on the other hand, I would've thought was a pretty decent business model still? Yes, you can get some magazines and stuff in supermarkets, but only a fraction of the choice. They always seem to be packed when I go in?
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