Shares of DVD "rentailer" Blockbuster plummeted more than 30 percent to 27 cents in early trading on the NYSE today, a historic low for the company. Trading was intense as investors unloaded their shares after the company said in a statement that the major studios could tighten their credit terms or cut off credit altogether given the company's current dire financial situation. Should the studios decide not to allow Blockbuster to buy its inventory of films on credit, "we may determine that it is in the Company's best interests to voluntarily seek relief through a prepackaged, prearranged or other type of filing under Chapter 11 of the U.S. Bankruptcy Code," Blockbuster said in a filing with the Securities and Exchange Commission on Tuesday. It noted that during the last quarter, same-store revenue dropped 14.7 percent compared to a year ago. It put its net loss for the quarter at $434.9 million. On its website, MarketWatch commented, "It's a sign of the times, really. This shapes up as a sad story of yet another American company that failed to envision the power of the Internet and the downfall of a brick-and-mortar outfit."

17/03/2010