Blockbuster Bankruptcy Case 7

When a business is in financial trouble they may decide to file for bankruptcy. Bankruptcy is a process in which consumers and businesses can eliminate or repay some or all of their debts under the protection of the federal bankruptcy court. For the most part, bankruptcies can be divided into two types -- liquidation and reorganization. When a business liquidates its asset they sale their assets and the proceeds go to pay their debts. When a business reorganizes they find a way to remind open to try to make a profit. A business filing for bankruptcy only has 3 bankruptcy options chapter 7, chapter 11 and chapter 13.
They can file for chapter 7 which the businesses that do not have the means to restructure their obligations and continue the business can choose. In chapter 7 a trustee is appointed, available assets are sold, and creditors are paid to the extent funds are available. This option is only available for partnerships, limited liability companies, and corporations. Small businesses with sole proprietorships can also file for chapter 7 but it depends on their income.
Another
They missed a chance to purchase Netflix in the beginning and probably regret that decision. They tried to restructure on their own but infighting between the CEO and board of directors made it impossible to form a proper business model. Blockbuster failed to use up dated technology such as streaming videos online, rental kiosks instead putting must of their focus on the retail stores. When they realize that Netflix and Redbox were basically taking all of their customers they started to do similar things like Netflix. But Netflix filed suit against them claiming product infringement. Blockbuster countered claiming Netflix was using the patent as a deceptive practice designed to maintain an illegal monopoly. There was a settlement in which Blockbuster had to pay Netflix 4.1 million