ScripSmart caught wind of Blockbuster's bankruptcy intentions a few weeks ago and today it's official: Blockbuster will filed for Chapter 11 bankruptcy protection and plans to reorganize it's finances.
Blockbuster Gift Cards
According to the company's press release:
"Blockbuster intends to continue honoring its Rewards program, valid coupons, gift cards and other customer programs."
That's good news for gift cards holders and while it's possible Blockbuster will emerge as a better company with a more competitive offering, we consider this a red flag. The Blockbuster Gift Card is a risky purchase this holiday season and if you own a Blockbuster Gift Card, use it soon.
Stores Will Close
At this point, Blockbuster has not given any numbers on store closures. However, they do state:
"As part of the recapitalization process, the Company will evaluate its U.S. store portfolio with a view towards enhancing the overall profitability of its store operations. Currently, all 3,000 of the Company's stores in the U.S. will remain open."
You can bet the company will close the doors on many of it's worst performing locations and gift cards will become less convenient to redeem.
We've Seen It Before
Earlier this year, Blockbusters next largest competitor for in-store movie rentals, Movie Gallery, Inc. (Hollywood Video / Game Crazy), closed it's doors for good. As a result, all gift cards issued by the company are now worthless.
ScripSmart Can Help
Remember, a ScripSmart Account give you a heads up if a gift card you own is at risk of being worthless. Just sign up, register your gift cards and we'll take car of the rest with the ScripSmart Alert system.