Last week in my [post about Redbox](http://johnaugust.com/archives/2009/redbox-video-and-economics), I reminded readers that video retailer Blockbuster is always rumored to be circling the drain, yet somehow always survives. So I wouldn’t count it out. However…
Yesterday, they filed with SEC, noting “substantial doubt” about their [ability to continue](http://yahoo.brand.edgar-online.com/displayfilinginfo.aspx?FilingID=6529771-95381-162916&type=sect&dcn=0001193125-09-073613):
> The risk that we may not successfully complete this refinancing and obtain the related amendment of certain financial covenants included therein, and/or the risk that we may not have adequate liquidity to fund our operations as a result of not meeting our projected financial results, even if the refinancing is completed within the time and upon the terms contemplated, raise substantial doubt about our ability to continue as a going concern.
That’s a very long sentence.
I’m not rooting against Blockbuster. If they’re going to fail, I’d rather they do it at a time when the economy was healthy and their many employees could find jobs. But I’m curious what happens if they do go under.
That’s a tremendous number of used DVDs suddenly flooding onto the market, and a huge DVD buyer that suddenly disappears.