Wednesday, March 4, 2009

Blockbuster next on the block?

Blockbuster has hired Kirkland & Ellis LLP to help them explore a bankruptcy protection filing. This could affect the 7,500 Blockbuster stores around the country, but specifically those in our market. Their stock has dropped over 75% today on word of the exploration.

It is hard to not have seen this coming. With the competition from Netflix and the online streaming of video, Blockbuster in its current incarnation was not long for this world. They could emerge from this with a new business plan but that won't help the investors and landlords that have single tenant locations that will be affected by the loss of this tenant.

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