Blockbuster Warns of mid-September pre-planned bankruptcy

(HMG) – It’s a do-eat-dog world out there.  Years ago its’ giant chain of stores forced many local video stores out of business, but now Blockbuster Inc., is being forced out of the game by upstarts Netflix and Redbox.  According to a new Los Angeles Times report, executives from Blockbuster and its senior debt holders last week held meetings with the six major movie studios to basically warn them they are broke and  are set to enter a “pre-planned” bankruptcy in mid-September. The mid-September filing coincides with Blockbuster’s scheduled $42 million debt payment, and comes after their stock was delisted from the NYSE last month. The Dallas-based company’s total market value now is $24 million. They reportedly plan to to use about 5 months time to restructure its $1 billion debt and get out of the leases on at least 500 of the worst performing of its 3,424 stores. and hopes everyone will start using Blockbuster’s new kiosks, which will charge $1 per night.