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Blockbuster suffers $425 million loss

Blockbuster - not a box-office success
Blockbuster - not a box-office success

Blockbuster, the movie rental company, posted a $425 million (£280 million) loss this week – prompting speculation the company's position on the New York Stock Exchange is at risk.

Blockbuster has had a hard time of it of late. Its slow transformation from a high-street store to an online one has not had the success the company would have hoped. This has meant that many stores – in the US at least – have closed.

Last count there was 253 shut in January and another 150 to go in March.

Future is bright, honest

There is some hope. Cheaper DVD kiosks are cropping up – 7,000 set for 2010 – and its on-demand streaming service is to be bolstered. But the company currently has debts of $964 million (£632 million) – which points to a drastic change in its business, including a chunk of its advertising budget disappearing.

Despite the rather downbeat news, CEO Jim Keyes said in a statement, "While we believe the future is bright, the next 12 to 18 months will remain challenging."

Where's Bob Holness when you need him?

Via BoyGeniusReport