Blockbuster denies it's heading for bankruptcy
It doesn't look good: Netflix stock closed at $38.18 on Friday. Blockbuster shares closed at 37 cents apiece.
In a particularly brutal retail recession, Blockbuster’s
fortunes have proven some of the roughest in the market. Despite direct
efforts to compete, Netflix has continued to make inroads against
Blockbuster in the rental business, including pioneering new-media initiatives that have given Netflix its best results yet.
Still, Blockbuster insisted on Friday that it has no plans for bankruptcy, which actually sent stock up from a sharper low earlier in the day. The franchise claims it can meet debt commitments through 2009 if need be, but it has taken steps to refinance at least some of what it owes.
According to the Dow Jones news wire, a signal of the company’s viability will come later this month when its fourth-quarter returns are released. In the meantime, Blockbuster continues to operate 7,500 stores in North America.
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