The news sent shares of the leading -- and bleeding -- video rental store giant dropping faster than box office receipts for Gigli. The stock surrendered 16% of its value Wednesday after having already given up plenty since being spun off by Viacom
Blockbuster has been trying to get its financial house in order. It did away with its pointless dividend. It let Movie Gallery
Blockbuster isn't dead. It just has the misfortune of toiling away in a niche that isn't as lucrative as it used to be. But coming to terms with its creditors isn't the only problem. The chain also needs to take a closer look at its model. The fact that Blockbuster's empire stands 9,000 units strong is a testament to its reach. Done right -- and doing it right will likely include a complete makeover -- there is still time to make it a Blockbuster night.
That time, however, is quickly running out.
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Longtime Fool contributor Rick Munarriz has been a Netflix subscriber -- and investor -- since 2002. The Fool has a disclosure policy. He is also part of theRule Breakersnewsletter research team, seeking out tomorrow's ultimate growth stocks a day early.