Blockbuster Finally Files for Bankruptcy

After years of rumors and months of procrastination, Blockbuster has finally filed for bankruptcy, effectively reducing their debt from $1 billion to $100 million. Blockbuster announced, via press release, a “pre-arranged” bankruptcy in order to “recapitalize” and “substantially reduce its indebtedness.”

Unfortunately for most stock holders, your debt caused by Blockbuster is still your own. The Chapter 11 filing reads “Under the proposed plan, there would be no recovery by the holders of the Company’s outstanding subordinated debt, preferred stock or common stock.” But really, why are you still invested in Blockbuster anyway? Netflix and Redbox are winning the war and this is Blockbuster’s first acceptance of defeat.

[via]