As Blockbuster slowly but surely falls, consumers have seen waves of store closures and killer DVD sales. But that's not the only sale on the struggling company's platter.
In February, Blockbuster decided to go up for sale. Unsecured creditors (including Hollywood studios like Disney Co.) weren't too fond of the plan and filed papers with U.S. Bankruptcy Court. Owed over $100 million, these creditors felt that the sale would shortchange them, and wanted a Chapter 7 liquidation.
Reuters now reports that an agreement between Blockbuster Inc. and the creditors has been reached, and the company will proceed to auction this April.
According to the terms of the agreement, Blockbuster has a proposed sale date of April 4, which will be followed by a court hearing on April 7 to approve the sale. Depending on the terms of the sale, this could mean that Blockbuster can survive or be shut down, though survival seems pretty pointless at this point.
During the hearing, ruling judge Burton Lifland said, "If you've got a deep pocket, empty it out at the auction."
Could Blockbuster survive in some shape or form? Should it?