In this part of the country most people are Movie Gallery patrons, but regardless it is entirely possible that blockbuster could become a thing of the past in 2010. Personally, I think they will survive, but their last quarter was miserable and the stock currently trades at $10 cheaper than it did 5 years ago:
The 21% revenue decrease was mostly due to a 14% decline in same store sales. The firm’s net loss was $114 million compared to a $19 million loss in the same period in 2008. Blockbuster has only $141 million in cash and cash equivalents.
The market value of the company is only $125 million. Blockbuster has bought itself some time by refinancing a large part of its debt and it has been aggressively closing stores
A bankruptcy will do almost nothing to improve Blockbuster’s prospects. Blockbuster does have over $1.7 billion in assets, not all of them saleable, but the firm will almost certainly face liquidation in the relatively near future.
