Blockbuster May Be Going Bust
The folks at Blockbuster would really appreciate it if you’d pay your overdue late fees, renters. The company has warned it has “substantial doubt” about its ability to continue as a going concern.
Yes, Blockbuster, the 24-year-old chain that rents “more video games than any other company, store-based or online, in the nation,” is in rather dire financial straits. It told the SEC that it may not be able to continue, given that it may not be able to meet the conditions of a $250 million loan that would help keep it afloat.
While things look grim for Blockbuster, there’s a chance it could soldier on, something we’ll know for sure mid-May. But hopes for the chain’s video game rental by mail service to hit later this year sound iffy.
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I’m no expert of Blockbusters business, but I can’t understand how a company who charges the most for movie rentals (at least in my entire town), can be losing money. Blockbuster charges up to double the amount of other places but they’re having troubles? I will be honest, because of their no late charge policy, I switched to renting with them because I liked the freedom. It didn’t bother me that I drove 15 mins out of the way, past four other stores that rent for less to rent a movie that allowed me to return it on my schedule. Now with the new changes, I won’t bother. Thanks blockbuster for allowing me to pay more for something you used to offer for free.