external image blockbuster-store.jpgBlockbuster is filling for bankruptsy´╗┐

Webpage created by Leah Grudberg

What?

Blockbuster has been in big debt for a while, but they are finally signing the papers and preparing a long- awtied bacnkrupstcy-court filing. Bacnkruptcy means is a federal program, they have a process to provide protection to people who owe money to the people they borrowed it from. Blockbuster is filling for this to happen. Blockbuster has been in financial trouble for a few years, which is why they have to file for bankrupsty, to make there business continue so that they can keep making family movie nights go on without driving to the theatre! This maybe due to Netflicks, a lot of people now are prefferring netflicks over blockbuster. There could be a number of reasons why such as, Netflicks if $9 for a unlimited number of movies and also because netflicks has a lot more selection and they mail it to you. Where Blockbuster is $5 per rental, you don't really know what they have until you go to one of there locations, and they have late fees if you keep the rental after 5 days.

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When did this happen?

Last week(week of September 20th)

Has this happened before?

Well, yes, Blockbuster for a few years now have been saying they are going backrupted, some stores have, but not all. Now they are filling for bankrupted once and for all.

What is the long term impact of this event?

Some long term impacts on this event would possibly be, raising the price on rentals or DVD's or closing done on some locations.
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Sources:
These sources are news articles that tell all the details about blockbuster bankruptsy, including the statistics and the planing on the final process on their bankruptcy.
http://online.wsj.com/article/SB10001424052748704129204575506443334512852.html
http://www.usatoday.com/money/media/2010-09-23-blockbuster23_ST_N.htm
http://www.bloomberg.com/news/2010-09-22/blockbuster-said-to-plan-bankruptcy-filing-tomorrow-has-125-million-loan.html
http://blogs.wsj.com/bankruptcy/2010/09/22/the-daily-docket-blockbuster-nears-bankruptcy/