The satellite television provider Dish Network won an auction in bankruptcy court to acquire Blockbuster Inc. Dish Network plans to keep roughly 500 of the existing stores open. The video rental chain currently has a little over 1,700 stores nationwide and at one time had 4,000. Blockbuster suffered dwindling rentals as the popularity of Netflix grew. Blockbuster developed digital services to compete in the rental market which was an aspect that potential bidders were attracted to. Dish Network won the $320 million bid.
Dish Network plans to use Blockbuster assets to develop their own internet based rental service to compete with Netflix and there has been some talk of streaming live as well. Also, Dish may utilize Blockbuster stores to offer their services
Initially Blockbuster and their bankruptcy attorney filed for bankruptcy protection in September of 2010 with the hope they would be able to reorganize but holiday sales fell short. They were forced to sell off the company as their losses continued to grow.
Numerous companies and individuals face the prospect of severe financial losses. Most fear that filing for protection with the help of a bankruptcy lawyer will tarnish their lives. The fact is that unforeseen circumstances can cause a business or individual extreme fiscal losses and bankruptcy is there to protect them from the devastation that can befall. Contacting bankruptcy attorney and seeking their advice can help the failing company or indebted person decide which is the best course for them to take.
