As expected, Blockbuster Inc. said yesterday that the company is for sale, “after a previous bankruptcy reorganization plan collapsed and its business continued to deteriorate over the holidays,” as the Los Angeles Times reports.
Yesterday, the company submitted a plan “for an auction process to U.S. Bankruptcy Court in New York. A holding company formed by four of its largest creditors - Monarch Alternative Capital, Owl Creek Asset Management, Stonehill Capital Management and Varde Partners - has put in an opening ‘stalking horse’ bid of $290 million.
“The offer is intended to draw other buyers and create a floor on a price. If no other bids are submitted, however, the four creditors would end up controlling the DVD rental and sales company.”
Yesterday, the company submitted a plan “for an auction process to U.S. Bankruptcy Court in New York. A holding company formed by four of its largest creditors - Monarch Alternative Capital, Owl Creek Asset Management, Stonehill Capital Management and Varde Partners - has put in an opening ‘stalking horse’ bid of $290 million.
“The offer is intended to draw other buyers and create a floor on a price. If no other bids are submitted, however, the four creditors would end up controlling the DVD rental and sales company.”
- KC's View:
- In view of how many retailers are talking about small-store formats, the most valuable thing the eventual owner of Blockbuster may control is real estate.
