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Blockbuster going bankrupt?
It is ironic that just last year Blockbuster was trying to buy Circuit City
Blockbuster (BBI) shares are down 78% to $0.22 on a report that the troubled movie rental chain has hired a lawyer to explore a possible bankrupcy filing.
Bloomberg reports that Blockbuster has hired Kirkland & Ellis to "evaluate restructuring options," which could include bankruptcy.
Blockbuster has 7,500 stores, but has struggled to compete with online DVD rental services like Netflix (NFLX), kiosk companies like Redbox, etc.
Last year, Blockbuster tried to buy Circuit City for more than $1 billion. Circuit City, of course, started its bankruptcy liquidation process this past January.