Blockbuster DVD chain warns it faces bankruptcy
Category Business | Wednesday, March 17th, 2010
After 15 years as a high street stalwart, the heavily indebted DVD rental chain Blockbuster has warned that it is in danger of declaring bankruptcy as it faces a possible credit squeeze by Hollywood studios and struggles to keep up with movie buffs’ changing technological habits.
The Dallas-based company is labouring under $975m (£635m) of debt, largely inherited when the business was spun out of the media conglomerate Viacom six years ago. After hefty interest repayments, Blockbuster lost $569m during 2009.