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 possiblebankruptcy.
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.