Blockbuster Entertainment has today admitted that the company is in serious danger of going bankrupt.
The company said that it’s struggling to secure the latest Hollywood DVD films due to several debts, and growing concerns of their ability to continue business. They said:
"Our level of indebtedness may make it more difficult for us to pay our debts as they become due and more necessary for us to divert our cash flow from operations to debt service payments."
They also claim the "increasingly competitive industry conditions" as a reason for "substantial doubt about our ability to continue as a going concern."
Online rental services such as LoveFilm.com are attracting consumers with the proposition of unlimited rentals with no late fees for a small monthly payment, not to mention that both Xbox Live and PSN allow you to download rental films for a small cost, too. Anyone who has been hit with a hefty overdue fee from Blockbuster, in the past, will agree that services like LoveFilm.com are a Godsend.
The company said that it’s struggling to secure the latest Hollywood DVD films due to several debts, and growing concerns of their ability to continue business. They said:
"Our level of indebtedness may make it more difficult for us to pay our debts as they become due and more necessary for us to divert our cash flow from operations to debt service payments."
They also claim the "increasingly competitive industry conditions" as a reason for "substantial doubt about our ability to continue as a going concern."
Online rental services such as LoveFilm.com are attracting consumers with the proposition of unlimited rentals with no late fees for a small monthly payment, not to mention that both Xbox Live and PSN allow you to download rental films for a small cost, too. Anyone who has been hit with a hefty overdue fee from Blockbuster, in the past, will agree that services like LoveFilm.com are a Godsend.
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