In a move even Ray Charles saw coming (what, too soon?), Blockbuster Video notified DVD distributors that it would be filing for Chapter 11 Bankruptcy next month. It's reorganization, but it's still a bad sign for the rental chain that has been in business since the invention of VHS tapes. Blockbuster is notifying distributors now in an attempt to continue to get inventory for the few stores across the country that haven't closed as the company attempts to clear up some of its $1 billion debt. Most of the debt is coming from rent on the remaining stores, and they are looking to bail out on that, allegedly. I doubt, however, that this will look good to distributors, and wouldn't be surprised to see far less inventory in stores in the upcoming months. I mean, who would give a store in bankruptcy credit for movies?
The move has been coming for awhile now, and the company is always on the "companies to watch sink this year" lists for the past 5 years or so, thanks to companies like Netflix and Red Box.
I personally am going to miss the brick and mortar stores. While I haven't been in one for a long time, there is something that is soothing to my Chi knowing I could if I wanted to. While my Chi doesn't pay the bills, I understand why they are disappearing. I mean, I'm a huge fan of Netflix, and Blockbuster just seems to be throwing blind solutions at the problem of evolution and hoping something sticks. It's clearly not the way to run a business.
So, are you sad to see them go?
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