Dallas Based Blockbuster Plans to File for Bankruptcy

This past Friday, Dallas based Blockbuster said that it has plans to file for Chapter 11 bankruptcy.  The video store giant told news sources that it currently has enough cash flow to support operations for only the next 12 months. 

After its securities filings, the company made a public announcement.  Blockbuster said that if financial obligations could not be met, the company would have no choice but to file for Chapter 11.  It also said that by law, it is required to use cautionary language due to a possible bankruptcy.

In its latest filings with the SEC, Blockbuster said that it had "a successful implementation" of its cash management strategy.  Still, it was not able to achieve desired revenue targets and would have to either close more stores or pursue liquidation, financing or move toward filing for Chapter 11.

If you are noticing signs of bankruptcy and thinking about filing in the city of Dallas, contact a Dallas bankruptcy attorney from the Malaise Law Firm that can help you understand your options.