Blockbuster Files for Chapter 11 Bankruptcy Protection


Looks like those rumors about Blockbuster declaring bankruptcy in September were true. Today, the company announced that it has filed for Chapter 11 bankruptcy in an effort to stave off its more than 1 billion dollars in debt. Blockbuster promises that its stores will continue serving customers, however.

Recommended Videos

All of Blockbuster’s U.S. operations, including its stores, DVD vending kiosks, by-mail and digital businesses, are open and serving customers in the normal course. Blockbuster is fulfilling all orders as usual, including continuing to provide access to new releases the first day they become available. Blockbuster intends to continue honoring its Rewards program, valid coupons, gift cards and other customer programs.

Blockbuster franchise locations in both the U.S. and abroad are independently owned, operated and funded, and are also continuing normal business operations. In addition, BLOCKBUSTER Express vending kiosks, owned and operated through a relationship with NCR, continue their operations in retail locations around the U.S. The Company’s international operations in Canada, Denmark, Italy, Mexico, and the United Kingdom are also conducting business as usual. However, Blockbuster will no longer provide funding to support its operations in Argentina, which have experienced continued shortfalls in operating cash flow.

A lot has already been said about this by a lot of smart people; Bloomberg has the most comprehensive report on what this means on the business end, and Ars has a bit more from a consumer vantage. The succinctest summary we’ve seen yet is the above graph from The Consumerist, pitting Netflix’s rise against Blockbuster’s decline. In short: It’s increasingly tough to get people to walk into a brick-and-mortar store and shell out a lot of money on one rental which they’ll have to physically return, on top of which there may be late fees when people can just stream the same thing to their XBox for a flat monthly fee.

Of course, it hasn’t always been this way: Back in 1992, when this commercial was made, the promise of a store with “over 10,000 videos!” was enough for Blockbuster to boast that they had “the perfect video store.”

As the commercial itself puts it: “Wow, what a difference.”

( title pic via Consumerist. video via @richdemuro.)


The Mary Sue is supported by our audience. When you purchase through links on our site, we may earn a small affiliate commission. Learn more
related content
Read Article What Caused the Rift Between Amerie and Harper in ‘Heartbreak High’ Season 1?
Ayesha Madon as Amerie Wadia and Asher Yasbincek as Harper McLean in Heartbreak High on Netflix
Read Article ‘Abigail’ Review: This Ballerina Vampire Has the Perfect Bite
Abigail and Joey doing a picky promise in abigail
Read Article Sophia Di Martino Breaks Down Sylvie and Loki’s Connection in ‘Loki’
Sophia Di Martino as Sylvie and Jonathan Majors as He Who Remains in the background on 'Loki'
Read Article Thank Goodness the ‘Bluey’ Special Ended the Way It Did
bluey, bingo, chilli and bandit from bluey
Read Article Is ‘Queen of Tears’ Fated to Have a Tragic Ending? We’re Not Ready for Episodes 13 and 14
Hae-in rejecting Hyun-woo after his second proposal in Queen of Tears
Related Content
Read Article What Caused the Rift Between Amerie and Harper in ‘Heartbreak High’ Season 1?
Ayesha Madon as Amerie Wadia and Asher Yasbincek as Harper McLean in Heartbreak High on Netflix
Read Article ‘Abigail’ Review: This Ballerina Vampire Has the Perfect Bite
Abigail and Joey doing a picky promise in abigail
Read Article Sophia Di Martino Breaks Down Sylvie and Loki’s Connection in ‘Loki’
Sophia Di Martino as Sylvie and Jonathan Majors as He Who Remains in the background on 'Loki'
Read Article Thank Goodness the ‘Bluey’ Special Ended the Way It Did
bluey, bingo, chilli and bandit from bluey
Read Article Is ‘Queen of Tears’ Fated to Have a Tragic Ending? We’re Not Ready for Episodes 13 and 14
Hae-in rejecting Hyun-woo after his second proposal in Queen of Tears