Blockbuster Avoids Liquidation
By JOSEPH CHECKLER and MIKE SPECTOR
It seems that with netflix, on demand, redbox etc. there are so many alternatives to going out and renting movies. With this reality in mind Blockbusters are going out of business. Personally, the one in my neighborhood went out of business about 2 years ago and I know of many others that were forced to close due to competition. A judge Thursday cleared the way for movie-rental company Blockbuster Inc. to sell itself to a group of hedge finds, after lawyers spent all day in courthouse hallways brokering a deal with movie studios that had objected to the sale items. It is difficult for places like Blockbusters to stay afloat in such a competitive market place. Several movie studios, who owed money for DVDs they sold to Blockbuster, had objected to the sale, as the original terms of the deal didn't offer them the recovery they wanted. It seems as if the judges gave Blockbuster a second chance, I just wonder how long it will last when their competitors seem to keep getting bigger as Blockbuster becomes forgotten.
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