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.