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Blockbuster posts $68 Million Loss
http://www.homemediamagazine.com/blo...ion-loss-23474
Rental icon goes on the auction block April 4 Bankrupt Blockbuster Inc. generated a net loss of $68.4 million from Jan. 3 through Feb. 27 — a sobering reality that likely contributed to the packaged media rental icon Feb. 21 announcing plans to put itself up for sale. Blockbuster generated revenue of $274.8 million during the period, which included $175 million in basic rental revenue, $60.3 million in previously rented (used product) revenue, $33.1 million in merchandise revenue and $6.4 million in undisclosed revenue, according to a filing with the U.S. Bankruptcy Court in New York. The rental chain posted a gross profit of $154 million, which was undermined by $183.5 million in general and administrative costs, $11 million in depreciation expenses and $3.2 million in advertising costs. Blockbuster also spent $16 million on related bankruptcy restructuring costs. The company ended the period with $146 million in accounts payables (vendors owed), compared with just $33.4 million in accounts receivables (monies owed) and $61.2 million in cash. Separately, Blockbuster officially goes on the auction block April 4, with bids accepted beginning at 10 a.m. EDT. If no legitimate offers exceed the opening “stalking horse” bid of $290 million, that bid by a group of senior lenders dubbed Cobalt Video Holdings would likely be declared the purchase price at a post-auction hearing slated for April 7. U.S. Bankruptcy Judge Burton Lifland overruled objections to the “stalking horse” bid, amid other concerns, in a hearing March 17. In that hearing, Lifland ruled that monies generated from the auction sale be administered to numerous debtors, including payments (not exceeding $4.4 million each) to select studios for revenue-sharing agreements. In addition, the studios each will receive cash payments totaling $3 million for rental disks earmarked for destruction. The judge said the rulings do not preclude the studios from enforcing their respective rights against Blockbuster Canada, which was put up as collateral by the Dallas-based parent when filing Chapter 11. Blockbuster must also pay the studios “all costs and expenses of administration” from Feb. 25 through the closing date of the sale, in addition to any rev-share agreement payments from March 7 through the closing date. Studio balance claims frozen by the court include Sony Pictures Home Entertainment ($28 million), 20th Century Fox Home Entertainment ($20 million), Warner Home Video ($19.2 million), Universal Studios Home Entertainment ($15.9 million), Walt Disney Studios Home Entertainment ($9.4 million), Summit Home Entertainment ($9.3 million) and Paramount Home Entertainment ($4.4 million). |
#2
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I could of had a v8
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[SIGPIC][/SIGPIC] ╭∩╮(︶__︶)╭∩╮ Even the Devil, which is the main share holder of blockbuster is saying you guys are making me look bad! Horse Power is how fast you hit the wall. Torque is how far you take the wall with you. |
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JustTheFacts (March 30th, 2011) |
#3
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What would you do for a klondike bar?
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#4
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__________________
[SIGPIC][/SIGPIC] ╭∩╮(︶__︶)╭∩╮ Even the Devil, which is the main share holder of blockbuster is saying you guys are making me look bad! Horse Power is how fast you hit the wall. Torque is how far you take the wall with you. |
#5
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So looks like we'll know what happens next on Thursday, April 7.
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Life is not one thing after another, it's the same God damn thing over and over -- Dorothy Parker |
#6
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(uuummm.."Hot Head"...those Klondike Bars are pretty good. Especially those "OREO" ones (just sayin').
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KAWLIGA.......I'm not done until they're done. |
#7
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Run for the border.
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#8
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What would I do for a klondike bar? I'd go to the freakin' store and BUY one.
Seems to be the best choice all around
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"Never mind him, he's just trying to get laid" --Helena Bonham Carter |
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#9
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You know, it's almost not news to post a Blockbuster loss. It's a given. Like the sun will rise, Dunlap will forget batteries, etc.
It'd be news to see a headline that said "Blockbuster Posts Profit. Also, Temps In Underworld Require Winter Coat."
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The Following 2 Users Say Thank You to deathbydanny For This Useful Post: | ||
AbandonedDreams (March 30th, 2011), BUYMECAR (March 31st, 2011) |
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