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Blockbuster Facing Bankruptcy

Blockbuster Facing Bankruptcy

see url The film and video game rental franchise has admitted that it is under a very real threat of bankruptcy. According to reports in the Financial Times it has struggled to secure the latest Hollywood DVD rights in light of its debt, which in turn could further impact on the business.

The firm issued a statement saying:

watch “Our level of indebtedness may make it more difficult for us to pay our debts as they become due and more necessary for us to divert our cash flow from operations to debt service payments.” It also referenced “increasingly competitive industry conditions” as a cause for “substantial doubt about our ability to continue as a going concern”.

Order Reflection Paper With online rental companies offering a wider selection with no late fees it is proving increasingly difficult for video rental stores to keep up.

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