Could the end of brick-and-mortar video rental stores be imminent? According to this story, Blockbuster may be on the verge of collapse.
Movie rental company Blockbuster Inc. said Monday the risk that it may not complete financing deals raises “substantial doubt” about its ability to continue as a going concern.
Dallas-based Blockbuster, which has struggled amid the rising popularity of DVD-by-mail services like Netflix, disclosed the warning in a filing with the Securities and Exchange Commission. The company had already cautioned last month that its auditor was likely to raise doubts about its ability to stay in business.
A going-concern qualification refers to an auditor’s assessment of a company’s ability to continue to operate for the foreseeable future.
If Blockbuster goes under, this could be a major problem for a lot of film viewers, especially those who are older or economically disadvantaged, and do not have digital cable or access to the Internet.