Got $290 Million? Wanna Buy An Obsolete Retail Chain?
Going once, going twice, sold to...well, no one yet. But Blockbuster Inc. (you know, where you used to go an rent those huge rectangular plastic cartridges with a movie on them) is about to go up for sale as part of their bankruptcy process, according to the LA Times. The opening "stalking horse" bid: $290 million. What if no one goes for it? Then their four largest creditors, Monarch Alternative Capital, Owl Creek Asset Management, Stonehill Capital Management and Varde Partners, would get the business. "Billionaire corporate raider Carl Icahn, the largest owner of Blockbuster's debt, is not part of the stalking horse bid." The company is hoping to be bought up by investors who can come to the table with not only the cash, but also a vision for the company's future.
Blockbuster first prepped people for their bankruptcy filing in August 2010. Part of the owners' plans were to "exchange their debt for full ownership of the company," which does not seem to have been able to take place.
So what is a "future vision" for a business like Blockbuster, who have logged in over $1.1 billion in losses since 2008?