Dallas Blockbuster, which has been trying to avoid filing for bankruptcy protection amid tough competition from such rivals as Netflix, said Thursday its second-quarter net loss widened. The company also said it agreed to a new forbearance agreement with debt holders that will give it more time as it seeks to recapitalize.
The chain’s net loss for the quarter ended July 4 was $69 million, compared with $37 million last year. Revenue slipped 20% to $788 million from $982 million last year.
Blockbuster said quarterly results were hurt by the closure of company-operated stores, lower revenue in stores open at least a year, and "liquidity issues" including costs related to its recapitalization efforts and lease-termination costs.
Jim Keyes, chairman and CEO, said Blockbuster is making progress but needed more time to complete "complex, multiparty negotiations."
"Our objective is to complete a recapitalization as soon as possible so we are better positioned to focus our attention on the strategic opportunities to continue our business transformation," he said.