Blockbuster is getting ready to go belly-up. According to auditor’s assessment, the company might not be generating enough cash to fund its operations:

Even if the amended credit facility is funded upon the terms contemplated, we may not have sufficient liquidity to finance the ongoing obligations of our business, which raises substantial doubt about our ability to continue as a going concern.

In other words: even if they get some loans and refinance existing ones, they simply are not making enough money to pay their bills.

One of the culprits is Red Box and their kiosk-style movie rental structure. Cheaper to maintain than college kids.

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