Dallas – Bankrupt video rental store chain Blockbuster on
Tuesday announced a deal to sell the company for $290 million to "stalking
horse" bidder Cobalt Video Holdco, a group comprised of several private
equity firms which are all secured noteholders of the company. The company also
asked the court handling its bankruptcy to authorize an auction process, for other prospective bidders.
company expects "a majority" of its U.S. stores, in addition to its
international operations in Canada, Denmark, Italy, Mexico and the U.K. will
continue to operate normally during the sale process.
"The purchaser will
be able to take full advantage of Blockbuster’s many strengths, which include
an internationally recognized brand name, an exceptional library of more than
125,000 titles, millions of loyal customers, and a multi-channel content
distribution platform," said Blockbuster chairman and CEO Jim Keyes.
Parties to Cobalt Video Holdco include funds managed by Monarch Alternative
Capital, Owl Creek Asset Management, Stonehill Capital Management and Värde