4 ms·
I keep coming back to Block Buster. Their model was borrow money to open stores and drive smaller mom and pop rental places out of business. I'm not sure but I
by Gibbon1 6y ago
I keep coming back to Block Buster. Their model was borrow money to open stores and drive smaller mom and pop rental places out of business. I'm not sure but I think when you add everything up they never made a positive return doing that. They just ended up leaving banks holding the bag when they went bankrupt.
Lot of VC unicorns feel like that times 100.
- jdxcode 6y agoWhat? Blockbuster operated under a franchise model. They didn't borrow money to open stores—it was local "mom and pops" doing that.
- dragonwriter 6y ago> Blockbuster operated under a franchise model. Blockbuster had franchises but for most of it's dominant phase also had a large number of corporate stores (some of which originated with one of the several competing chains that it bought outright.)
- Gibbon1 6y agoI could misremember but that's what I remembered seeing. They took on debt to expand but never reaped enough monopoly benefits to pay of the rolling short term debt they accrued.