Thursday, November 11

Blockbuster Offers to Buy Hollywood Video

the title should be Last ditch effort before Blockbuster goes out of business!!!... because that is all this is... the big boy is about to die... let me say it again... Blockbuster is going bankrupt in the next two years... they remind me a lot of Heckinger stores... in case you didn't live on the east coast during the early 90s... Heckinger was the first "Home Depot-esque" store (i.e. big box selling home & garden stuff)... well they got put out of business by HQ and HQ has gone the way of the dodo via Home Depot and Lowe's...

what does that mean... well - blockbuster owns a lot of real estate... this is what i would do... go to cash or cc only sales (no checks)... begin to sell their properties in block groups... sell their inventory to a wholesale chain (e.g. netflix or walmart) at half price... and then after one year they should have enough cash to pay off all their liabilities and still have at least $40 million to distribute to their shareholders as a "one-time" dividend... call me crazy, but it would be better to get something as opposed to zero when they go bankrupt... AND they pay off all their debts without going into court protection...

well... if they need help give me a call... doesn't look too complicated... oh and Hollywood Video should think about something similar as well... but they are in the process of selling to a venture capital firm... who i am sure will flip them to someone else in less than two years...

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