Late last week the inevitable finally happened: Blockbuster filed for Chapter 11 bankruptcy.  The movie and game rental company has initiated “pre-arranged” chapter 11 proceedings, meaning the magnitude of this unfortunate news did not suddenly creep upon them.  A plan for a comeback is in the works.  According to the press release (in full after the break), “the recapitalization plan would substantially reduce the Company’s indebtedness — from nearly $1 billion currently to an estimated $100 million or less when implemented.”  But how will Blockbuster “recapitalize its balance sheet and put the Company in a stronger financial position as it continues to pursue its strategic plan and transform its business model”?  First by filing for bankruptcy; next by evaluating all its stores.  Though Blockbuster promises that all 3,000 stores will continue to operate normally during this transition period, don’t act surprised if handfuls of them are asked to close their doors.  It’s happened before; around 1,000 stores closed up shop within the last year.  With Netflix and other companies like it riding the coattails of the digital revolution, it’s really only a matter of time before Blockbuster and its brick and mortar initiative is dead and gone.  Sadface?

[Via Bloomberg; Engadget] Continue reading Blockbuster’s gone bankrupt; it took this long? →