Thaindian News

Sep 24 (THAINDIAN NEWS) On Thursday, the store Blockbuster filed for bankruptcy protection under Chapter 11. According to the reports, the blockbuster has filed for Chapter 11 because of its mounting losses, rising debt and competition from the competitors. The company is expected to operate its 3,300 U.S. stores but analysts predict that hundreds of stores will be closed.

Blockbuster is a Dallas based company which has approximately 25,500 employees, and out of these, there are 7,500 full-time workers.

With modernization and latest techniques today American’s can enjoy watching movies at home without going to rental stores. The reason behind Blockbuster’s business failure is Netflix where you can get DVD though mails, cable video on demand and Redbox vending machines. Due to its bankruptcy Blockbuster’s stocks have been wiped out from New York Stock Exchange in July.

Carl Icahn and his group who own 80% of Blockbuster’s debts will get new shares and again grip their control on the Blockbuster’s stock board after returning the forgiving debts. This would be Icahn’s second time to push for Blockbuster financial success.

Let’s hope that the era of Blockbuster and its blue-and-gold torn-ticket logo will be back.