Unfortunately, the last movie ever rented in a Blockbuster happened last Saturday in Hawaii.  Blockbuster has officially ended all store rentals and will close its remaining 300 shops by early January. The company opened in 1985, lasting 25 years.

Blockbuster filed for Chapter 11 bankruptcy back in 2010, claiming $900 million in debt and mounting losses in its movie division.  During this time, its competitors Netflix and Redbox made their way to the top.  A year after filing for bankruptcy, Dish Network bought the company.  Dish Network will now focus its attention to the Blockbuster On Demand streaming services.

Even a successful chapter 11 bankruptcy would not have saved the decline of Blockbuster.  The main purpose of a Chapter 11 is to allow the business owner to retain their company and continue doing business, while resolving their debt.  There are usually two methods.  One method is for the business owner and their creditors to agree upon terms for a reorganization, which can include selling some of the company’s assets to cover debt.  Another method is for creditors to be granted equity in the company itself.

In this situation, there was nothing the company could have done to get people to keep renting movies.  Technology was rapidly changing and Blockbuster was too late to make the change.  Blockbuster’s huge investment in traditional stores made it slow to realize the Web’s importance.  Blockbuster even had the opportunity to buy Netflix back in 2000 for $50 million, an offer they would happily make now.  Sadly, the nights of wandering the aisle to pick a movie will be considered a burdensome pastime to future generations.

Read more about our bankruptcy services…

Receive a FREE Consultation

Use the form below or call us at 602-456-6085 today. We’re here to help.

    Our Locations

    • Phoenix Office – New Wright Law Offices  2999 N. 44th St., Ste 600 Phoenix AZ 85018  Telephone: 602-456-6085 / 866-703-3287 Phoenix Law Office
    • Phoenix Office – Old Wright Law Offices  668 N. 44th St., Ste 320 Phoenix AZ 85008  Telephone: 602-456-6085 / 866-703-3287 Phoenix Law Office
    • Scottsdale Office  Wright Law Offices  7135 East Camelback Road, Ste 230 Scottsdale AZ 85251  Telephone: 480-845-0145 / 866-703-3287 Scottsdale Law Office
    • Tempe Office  Wright Law Offices  2238 S. McClintock Dr. Tempe AZ 85258  Telephone: 480-845-0145 / 866-703-3287 Tempe Law Office
    • Avondale Office Wright Law Offices  12725 W Indian School Rd, Suite E-101 Avondale AZ 85392  Telephone: 623-258-4480 / 866-703-3287 Avondale Law Office
    • Mesa Office Wright Law Offices  4856 E. Baseline Rd. Suite #104 Mesa, AZ 85206 Telephone: 480-845-0145 / 866-703-3287 Mesa Law Office
    • Glendale Office  Wright Law Offices  20325 N. 51st Ave., Suite 134 Glendale, AZ 85308 Telephone: 623-258-4480 / 866-703-3287 Glendale Law Office

    What our clients are saying…

    Mr. Wright and his staff were amazing. They made a negative situation a lot better and turned it into a positive. Could really tell they care helping people and I will refer their Phoenix Bankruptcy Attorney firm to friends and family. Thanks again.
    I called around looking for the right bankruptcy lawyer and came across Benjamin Wright. He personally called me for the consultation seeing how I live in Kingman AZ. He was very helpful from the start and his staff was very friendly and explained any questions I had, sorry for all the questions. I would definitely recommend Wright law offices, and I do!! Thanks for everything, you made what seemed like a hard thing to do simple!! You guys rock!!!
    Great lawyer, he really helped my mother out of a jam. She was totally new to bankruptcy and he talked with us for about an hour and a half to make sure she wouldn’t be worried.
    Ben is a kind and down to earth attorney. He worked around my busy schedule as a single mom (school, full-time job, and daycare pick up and drop off times). He explained absolutely everything to me and was good about e-mailing. I am writing this review as a THANK YOU.
    I had a very positive experience with Attorney Wright. He or his staff returned my e-mails and calls promptly (even after business hours occasionally). His fees were reasonable. He was patient with me when I showed up in court missing an important document. He is aggressive, but fair and nice.