Blockbuster loses $435 million in fourth quarter

Online rental services, kiosks hit company hard

Investors continue to downgrade Blockbuster.

Moody’s Investors Service has lowered shares of Blockbuster two notches closer to default, worrying that the company’s weak bottom line and heavy debt repayment schedule — to lower some $1 billion in debt — increases the likelihood of a distressed exchange.

The Dallas-based company has been closing stores as more consumers switch to online rental services and kiosks. Blockbuster lost $435 million in the fourth quarter.

As a result, Moodys lowered Blockbuster from “Caa1” to “Caa3,” two notches into junk status.

Move comes as Blockbuster is bringing back late fees. It will charge $1 for up to 10 days for late returns, capping the fees at $10 on $4.99 new releases. It is also limiting the time for those rentals to five days from the previous seven-day range. Nearly 80% of Blockbuster’s rentals are new releases, the company said.

Shares of Blockbuster are down two-thirds over last year, with the stock trading at 31 cents.

More Film

  • Jamie FoxxBET Awards, Show, Los Angeles,

    2018 BET Awards: Kendrick Lamar Wins Big at Youth-Centered Show

    Investors continue to downgrade Blockbuster. Moody’s Investors Service has lowered shares of Blockbuster two notches closer to default, worrying that the company’s weak bottom line and heavy debt repayment schedule — to lower some $1 billion in debt — increases the likelihood of a distressed exchange. The Dallas-based company has been closing stores as more […]

  • Japan Ramps Up International Film Co-Productions

    Japanese Film Makers Find Opportunities in International Co-Productions

    Investors continue to downgrade Blockbuster. Moody’s Investors Service has lowered shares of Blockbuster two notches closer to default, worrying that the company’s weak bottom line and heavy debt repayment schedule — to lower some $1 billion in debt — increases the likelihood of a distressed exchange. The Dallas-based company has been closing stores as more […]

  • Netflix Unveils 'Great Day in Hollywood'

    Netflix Unveils 'Great Day in Hollywood' Image Spot Highlighting Black Creators

    Investors continue to downgrade Blockbuster. Moody’s Investors Service has lowered shares of Blockbuster two notches closer to default, worrying that the company’s weak bottom line and heavy debt repayment schedule — to lower some $1 billion in debt — increases the likelihood of a distressed exchange. The Dallas-based company has been closing stores as more […]

  • Kendrick Lamar

    2018 BET Awards Complete Winners List

    Investors continue to downgrade Blockbuster. Moody’s Investors Service has lowered shares of Blockbuster two notches closer to default, worrying that the company’s weak bottom line and heavy debt repayment schedule — to lower some $1 billion in debt — increases the likelihood of a distressed exchange. The Dallas-based company has been closing stores as more […]

  • Tom Holland Uncharted

    Tom Holland Reveals 'Spider-Man 2' Title: 'Far From Home'

    Investors continue to downgrade Blockbuster. Moody’s Investors Service has lowered shares of Blockbuster two notches closer to default, worrying that the company’s weak bottom line and heavy debt repayment schedule — to lower some $1 billion in debt — increases the likelihood of a distressed exchange. The Dallas-based company has been closing stores as more […]

  • Palm Springs Shortfest Winners List

    'Fauve' Takes Top Prize at Palm Springs International Shortfest

    Investors continue to downgrade Blockbuster. Moody’s Investors Service has lowered shares of Blockbuster two notches closer to default, worrying that the company’s weak bottom line and heavy debt repayment schedule — to lower some $1 billion in debt — increases the likelihood of a distressed exchange. The Dallas-based company has been closing stores as more […]

  • The Closing of Magno, the Quintessential

    The Closing of Magno, the Quintessential New York Screening Room

    Investors continue to downgrade Blockbuster. Moody’s Investors Service has lowered shares of Blockbuster two notches closer to default, worrying that the company’s weak bottom line and heavy debt repayment schedule — to lower some $1 billion in debt — increases the likelihood of a distressed exchange. The Dallas-based company has been closing stores as more […]

More From Our Brands

Access exclusive content