What Happens to Your Shares If Blockbuster Files Chapter 11 Bankruptcy

If you have been following Blockbuster in the news, you have noticed the bankruptcy talk is really heating up again. Frankly, it is stunning Blockbuster was able to survive all of the way through 2009, but they made it somehow. Well, it is 2010 now, and Chapter 11 seems like it could easily be in the cards for Blockbuster.

If you are a Blockbuster shareholder, you have probably been whimpering each time you have checked your portfolio during the last six years, but things can still get worse. If you are one of the unlucky investors still hanging onto Blockbuster shares, be aware those shares could possibly become worth absolutely nothing. If Blockbuster enters Chapter 11 bankruptcy, the common stock (probably the type of stock you hold) will be worthless. You will have no way to recover your money, and you will not be entitled to shares in the reorganized Blockbuster. In short, you, the common shareholder, will be left holding the bag (an empty bag). If you are concerned about losing 100% of your investment in Blockbuster, consult with your broker as soon as possible and explore your options. Maybe you can cash in those shares and have just enough money left for a few DVD rentals at that little, struggling independent video store in your town.

Here We Go Again: The Shipping Upgrade Excuse Is Back

If you are experiencing extended shipping delays on your Blockbuster Online account and you contact customer service about the issue, get ready for one of Blockbuster's favorite excuses. When you complain about delays, Blockbuster is going to claim they are in the process of implementing upgrades to their shipping process.

There is nothing new about this excuse. Blockbuster used it for an inexplicably long period of several weeks during the fourth quarter of 2009. This supposed shipping upgrade never really improved delivery much, but it sure did seem to slow down shipping for a while.

Here is the deal. Blockbuster is supposed to ship DVDs to you when you have empty shipping slots in your queue. If they are making changes that are resulting in shipping delays, that is Blockbuster's problem, not yours. If Blockbuster cannot ship DVDs to you when they should, they must compensate you with a refund, coupon, discount, etc. If Blockbuster tries to hide behind the inadequacies of their own system, demand compensation from them. You have a right to it, and Blockbuster owes it to you.