Rumored: Blockbuster to File For Bankruptcy
Blockbuster has been closing movie-rental stores across the U.S.
The company has been battered by competitors including Netflix and RedBox, along with the increasing penetration of video-on-demand services --often with many free offerings -- by cable and satellite TV operators. It has been closing stores at a steady clip and at the time of its last earnings report in May, reported a first-quarter loss on steadily declining sales volume.
The shares have shriveled in the wake of all the bad news and are currently trading at 28 cents, down from a 52-week high of $1.56 and all-time crest of $30 back in 2002.
Earlier this week, the company released the recommendation from Glass, Lewis & Co., an independent proxy advisory firm that urged shareholders to stick with its choices for the board of directors. Blockbuster has been engaged in battle with investor Gregory S. Meyer, who is seeking a seat in the board election, scheduled for June 24.
The company said that Glass, Lewis suggested that shareholders elect its seven 2010 director nominees and other proposals because Meyer has failed to come up with "a cogent, practicable plan" for the future.
src:marketwatch
about damn time