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Is it an option to just shut a company down and give the money back to your investors before the courts force you to? Is there anyone left who doesn't see the
by ryanwaggoner 17y ago
Is it an option to just shut a company down and give the money back to your investors before the courts force you to? Is there anyone left who doesn't see the handwriting on the wall for Blockbuster? I hate watching companies blow through billions over a decade or more and eventually end up disappearing with nothing to show for it. Seems like they'd be better off facing reality and folding on their own.
- speby 17y agoI see your point but technically that also means going down without a fight. As I commented above, even though we don't see any business model and product innovation from Blockbuster (aside from trying to copy/steal from Netflix's model), it's still possible that perhaps with the right minds/leadership/people/talent, Blockbuster could change and become a leader again (look at what happened to Apple, Inc.).
- ryanwaggoner 17y agoBut at some point, when your liabilities far outweigh your assets and your brand is horribly tarnished, why not just start a new company?
- ars 17y agoIt's a public company, so if you think they are dead, you sell the shares. What could happen is that so many people sell shares that the price goes below what the fixed assets of the company are worth. Usually that acts as a floor - the share price will not go below that. But it could be that the owners of the shares will vote to shut down the company, and disburse the value to all shareholders. It's possible, but I don't know if that has ever happened before. Much more likely is that no one will lend them any money and they will shut down that way.