Blockbuster kicked off the New York Stock Exchange
Way back when I predicted that Blockbuster would go bankrupt as it struggled against businesses such as Netflix and Apple's iTunes and their better business models. The bricks-and-mortar video rental chain has repeatedly failed to move its business online or into a similar, lower-overhead type business.
Now, Blockbuster will likely be delisted by the New York Stock Exchange as its share price has fallen below the $1 minimum. The company was made aware of the issue back in November of 2009 and attempted to remedy the problem by combining its Class A and Class B shares. Unfortunately that required a vote which went bad due to a "low vote turnout". Not good.
Hopefully the 960 stores Blockbuster closes this year will lower its expenses enough to allow the company to begin paying off some debt. Unlikely. I stick by my prediction.
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Posted by Justin Davey at July 5, 2010 3:40 PM