Blockbuster Puts Itself Up For Sale: A Dream Dies

It's a shame, but no one can honestly say that they didn't see this coming. Blockbuster has been dwindling for years. They simply haven't been "popular" in years, and many younger folks don't even acknowledge their existence. These days, it's all about Netflix, Redbox and streaming media. Even cable TV is becoming a lot like Blockbuster: unnecessary. For years, the idea of renting films and video games from a retail shop made perfect sense. But this was before we had things like broadband Internet everywhere and by-mail DVD rentals. The company has been sliding ever since, and even though they tried the streaming thing themselves, they never really stood a chance against Netflix, who had already grabbed the lion's share of the market by the time Blockbuster woke up.

Now, after filing for Chapter 11 bankruptcy, the company is now putting itself up for sale. The previous reorganization plan fell apart, and now they have no option but to sell themselves for whatever anyone is willing to pay. Reportedly, Monarch Alternative Capital, Owl Creek Asset Management, Stonehill Capital Management and Varde Partners — has put in an opening "stalking horse" bid of $290 million. Even that value seems really high to us, but we guess that if this includes stores and real estate, it may be a smart purchase based on that fact alone. The business as a whole, however, seems dead.

If this bid doesn't attract any rival bids, four creditors would end up controlling the company, and who knows how fast it would be dismantled after that. It's sad in a way, but it's not the first time something like this has happened. Circuit City went through a similar ordeal a few years ago, and now Best Buy rules supreme. In 2000, who could've ever imagined that Circuit City would be shut down? The pain of progress strikes again.
AKwyn 3 years ago

It's to be expected. It's just a sign of the times, they just couldn't keep up.

Still, sad to see them go, I used to visit a Blockbuster regularly when they were still popular.

infinityzen1 3 years ago

Man, I used to hit up Circuit City and Blockbuster way back in the day. Been at least 5 years since I was in a Blockbuster though.

coolice 3 years ago
Hmm, There used to be a blockbuster store a few years ago near my place. I just realized after reading this article that its now a small mom-n-pop clothing store. Daym. If the creditors have all that land, they can seriously open any chain of stores they want.. simply because the facilities and infrastructure to do so exists. all they need is a change of signs and billboards and some merchandise. Cheers Blockbuster... though i never used your services, sorry.
realneil 3 years ago

They blew it with their predatory late fees. After they waxed your azz a few times for major bucks, you naturally just didn't want to play anymore. I found two movies in my sons car that he never took back. I took them in and they wanted to charge my account $185.00 in late fees for them. I told the guy that I wanted to see them one more time, grabbed them off of the counter and left. 2 days later I called and reported them lost and paid $61.00 for them. (Still way too much)

I never went back, and I never, ever paid them another dime of my money. nopity.gif

I don't have any sympathy for them at all. (except their employees needing to find new jobs)

inspector 3 years ago

Back then BlockBusters was the shizz!... lol

CDeeter 3 years ago

Well this should make Hollywood happy since it will reduce the rent-n-rip practice.

4hams 3 years ago

We still use Blockbuster almost daily... 

We have a Store about 5 mins drive from us and they have a deal where for a flat rate for a month you can rent as many movies as you want one at a time.  No late fees or restocking fees for this either... 

It does not include new releases but the kids love it as they can pick up stuff they have never seen.  :)  I think it costs the wife $20.00

ThunderBird 3 years ago

I guess I should cut up my BB card. Farewell BB

Optix 3 years ago

It -is- sad.  When I was little there was a corner store that only had a small selection but when Blockbuster opened it was a HUGE deal!  It was almost like going on a special trip because there were so many videos, televisions showing previews, games, junk food...

Too bad, but it's a sign of the times.  If they were smart about it, they would have gotten out of the brick and mortar stores and sunk that cash into an on-demand service.

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