Blockbuster shares plunge on bankruptcy warning
Blockbuster shares plunged nearly 30 percent on Wednesday after the heavily indebted movie rental chain said it may be forced to declare bankruptcy.
Shares in Blockbuster, which has been struggling to keep pace with rivals Netflix and Amazon, shed 29.18 percent on Wall Street to close at 28 cents.
Blockbuster at one time operated as many as 7,200 stores in the Americas, Europe, Asia and Australia but has been forced to close hundreds in recent years as consumers moved to other options such as online or on-demand film rentals.
The Dallas, Texas-based Blockbuster, in its annual report to the Securities and Exchange Commission late Tuesday, warned it may have to close additional stores or file for bankruptcy.
"Our indebtedness could have significant consequences for our business," Blockbuster said. "Our level of indebtedness may make it more difficult for us to pay our debts as they become due."
Blockbuster posted a net loss of 434.9 million dollars in the fourth quarter on revenue of 1.08 billion dollars.
Copyright 2010  AFP Global Edition
