Ahh movie night … I remember the days when I would go out with my father on a Friday night, follow my father through those Blockbuster doors and into a world of heavenly movies. Look in the sections for new releases and check old ones in case I had missed an old favorite. Then I’d have some popcorn and then we’d go home. Going to the store back then used to be a part of watching a movie, almost like walking into the cinema, once you entered Blockbuster, you knew you were starting to see a movie. However, that feeling or presentation may soon disappear in many people’s lives.

Blockbuster, America’s largest movie rental company, may be closing its doors. While Blockbuster had been successful since its iteration in 1985, times haven’t been too kind for the movie rental chain. While video rental chains have enjoyed a long and prosperous history, it seems like the movie rental days may become a thing of the past. Now I know what most of you are thinking, mainly, “Well, will Blockbuster really cease to exist? And, if so, how will it affect other chain stores or even other movie rental delivery systems?”

With the advent of the Internet, downloading movies has become more and more common. Many companies have realized this and have taken the opportunity by opening different online businesses to rent movies through the Internet. The recent release of the blu-ray disc, while certainly a jump in the quality of the video displayed on the screen, has certainly not helped the retail chain as expected. Although this may come as a surprise to some, Blockbuster has been losing money steadily since 2002, and in 2005 it had a market value of $ 500 million. On a more optimistic note, Blockbuster has recognized the need for an online delivery system and created an online store simply called Blockbuster Online, primarily to compete with Netflix.

Blockbuster CEO Jim Keyes has stated to his shareholders that Blockbuster cannot complete an agreement to modify its lines of credit. Now you may be wondering what exactly credit facilities are. Well, simply put, these are loans made in a business context. Blockbuster had recently reached an agreement with creditors to restructure a $ 40 million loan that is due in August.

Blockbuster operates about 7,400 stores worldwide and has accumulated $ 780.9 million in debt under its lines of credit. As people on the left and right try to figure out the best way to make use of new technology and communication, it seems that video rental has dropped quite a bit, as more and more people enjoy choosing and watching a movie in minutes in instead of choosing movies. in rental stores. As for the question of whether or not Blockbuster will go bankrupt, it definitely could, but it won’t without a fight. The downfall of the largest video rental chain would surely be a devastating event, but not entirely surprising.