Blockbuster falls 77% on bankruptcy reports

March 03, 2009 With $300 million in debt due in August, the nation's top old-style video rental firm confirmed Tuesday it has sought the help of a law firm to help it raise capital. Wall Street, though, decided early in the day that the hiring of Kirkland & Ellis signaled that Blockbuster could face bankruptcy, so its shares plunged 77% to 22 cents before trading was halted for the rest of the day. Raskopf said Blockbuster's options include a retreat to its capital management plan, whereby it operates the business on the cheap in order to meet its financial obligations.

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