Bidders queue up as Blockbuster goes on sale

Los Angeles: By this week, troubled home entertainment company Blockbuster might be in the hands of a famed Wall Street investor, a satellite TV company, a South Korean telecom firm, a group of hedge funds or another buyer.

Tomorrow the DVD-rental chain that was once the biggest name in American home entertainment will go up for auction after a planned reorganisation under chapter 11 bankruptcy protection failed when its financial performance deteriorated faster than expected.

Blockbuster has fallen behind fast-growing competitors like Netflix and Redbox, and has been unable to support a near $1 billion (Dh3.67 billion) debt.

The Dallas company will soon find itself with new owners, who will either attempt to revive the brand or maximise profits as its business continues to shrink.

Among the likely bidders expected to take part in the auction are billionaire corporate raider Carl Icahn, satellite TV company Dish Network and South Korean firm SK Telecom.

Offers submitted

A group of Blockbuster creditors including Monarch Alternative Capital, Owl Creek Asset Management, Stonehill Capital Management and Varde Partners previously submitted an opening bid of $290 million to set a minimum value. Richard Kanowitz, an attorney for Blockbuster's unsecured creditors, confirmed that more than two bids had already been submitted.