Thursday, September 23, 2010

Blockbuster Files for Bankruptcy -

Blockbuster Files for Bankruptcy -
"Blockbuster, the video rental chain, on Thursday filed for Chapter 11, hoping to slash its hefty debt load and retrench in the face of competition from rivals providing online and mail-based services.

Blockbuster has reached an agreement with its senior bondholders to cut its debt by roughly 90 percent, to about $100 million, by exchanging bonds for equity in the reorganized retailer.
Interestingly we were just talking in class yesterday about how Netflicks has performed so well. This serves as a good reminder of the "better mouse trap" theory.

Take a look at this chart comparing the two!

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