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Blockbuster files for bankruptcy, time to abandon ship

Posted by: Dan at 9/24/2010 7:03 AM
Blockbuster was one of the first companies to start renting games to consumers, but they are in the process of slowly fading away. Several times in the past year, we have reported negative news regarding Blockbuster including the company planning to shutter over 1,000 stores, threatening to hit bankruptcy and most recently how they were (finally) trying to crank up their games by mail service. Each time we accompanied that news with the advice to steer clear of Blockbuster as they were treading down that same path as Circuit City and CompUSA from the year before.

Yesterday, those warnings came true, as Blockbuster finally succumbed to the pressure and filed for Chapter 11 bankruptcy. Despite the company having a major investor steering the company now (Carl Ichan) and clearing million in debts, my suggestion remains the same. Quickly use up any gift cards lying around and discontinue using Blockbuster for anything until the inevitable fire sale of inventory that will probably come along in the near future.