The Wall Street Journal reports that Blockbuster has been unable to get creditors to agree on terms to exit bankruptcy (via NewTeeVee):
Blockbuster now plans to seek buyers instead of reorganizing in bankruptcy court and could ask a judge to approve bidding procedures for the company as soon as next week, the people said. Creditors including billionaire investor Carl Icahn and a consortium led by hedge fund Monarch Alternative Capital LP are leading contenders to buy the chain out of bankruptcy court, the people said.
In related news, Home Media Magazine reports that Blockbuster is being sued by Summit over payment for DVDs including Twilight Eclipse. The court filings expose some prices Blockbuster pays for movies:
Specifically, Summit last November shipped Blockbuster 426,180 DVDs (excluding widescreen) of Eclipse for unit prices ranging from $6 to $20.20 each, in addition to 92,290 copies of the film on Blu-ray Disc (excluding widescreen) for unit prices from $6 to $23.99 each.
Summit, which claims Eclipse was the fourth-biggest home video release of 2010, contends Blockbuster has generated $8.3 million in rental revenue from the shipments.
The studio also has outstanding invoices for 1,710 copies of The Hurt Locker on Blu-ray for $23.99 each, and 1,620 copies of Robin Hood Unrated Blu-ray/DVD combo for $24.99 each.
Separately, Summit last month shipped Blockbuster 294,990 DVD copies (including special editions) of Red at prices of from $6 to $18 each, and 66,480 Blu-ray copies of Red at prices of from $6 to $23.99 each.
Thanks to John & Bast for sending this in.
Robun hood unrated?
HA HA HA HA HA HA
Posted by: shthar | February 13, 2011 at 06:52 AM
If BB was smart they would close all their retail stores and concentrate on their by-mail and kiosk service.
Posted by: Mike | February 13, 2011 at 11:35 AM
Some of the stores are profitable though. Close all unprofitable ones and continue with by-mail and kiosk.
Posted by: Gran | February 13, 2011 at 12:28 PM
What do you mean by "in addition to 92,290 copies of the film on Blu-ray Disc (excluding widescreen)"? All BDs are native aspect ratio, or should be. I hope they're not pulling a "fool-screen" debacle again.
Posted by: Will Dearborn | February 13, 2011 at 12:58 PM
this could be a good thing for bb they need a new start!!
Posted by: jv42 | February 13, 2011 at 01:10 PM
BB has no kiosk service!
Maybe they should have started one, instead of licensing their name.
Posted by: Patrick | February 13, 2011 at 02:04 PM
Be funny if Netflix bought 'em.
Posted by: DanielT | February 13, 2011 at 04:48 PM
I'm not a business major but is there any upside in buying BB at this point? They seem done. [Of course so does AOL yet somehow they just shelled out $300 mil for Huffington.] I guess whoever bought Circuit City can buy them and do a limited mail only business. I think b&m retail for them must be dead though.
Posted by: rjejr | February 13, 2011 at 07:05 PM
Could be a prime opportunity for Netflix to experiment with storefront sales. Being able to sell movies through "blockbuster" outlets might warm them up a little more to the studios that are trying to hurt Netflix, provided they could still do it and not violate their agreement with Wal-Mart.
Posted by: John | February 13, 2011 at 07:31 PM