A recent Globe
and Mail article discusses how Blockbuster Canada’s financial situation is
circling closer to the drain and how unsecured Canadian creditors are likely to
walk away with nothing. The receiver made the decision to liquidate the company
to pay back secured creditors, unfortunately according to the balance sheets,
Blockbuster Canada has no money left and the company is left to face the dark
hole – bankruptcy. Blockbuster’s crisis is a good example of what happens to a
company which is not sustainable. Socially, Blockbuster was unable to adapt to
a changing market from DVD’s to online viewing and that issue was the catalyst
which has lead them to the brink of bankruptcy. If Blockbuster had paid closer
attention to the shifting market, and adapted to the shifting market, then
their situation today could be much different. Blockbuster also failed to focus
on their economics. With the increased substitutions on the movie rental
market, Blockbusters economic situation was changing and it seems as though
Blockbuster Canada had no sustainable economic plan. Poor planning and an
unsustainable business plan have lead Blockbuster to a bust.