Blockbuster Inc. is preparing to put itself up for sale after creditors disagreed on plans to give the movie-rental chain more cash to help it exit bankruptcy protection, people familiar with the matter said.
Blockbuster now plans to seek buyers instead of reorganizing in bankruptcy court and could ask a judge to approve bidding procedures for the company as soon as next week, the people said. Creditors including billionaire investor Carl Icahn and a consortium led by hedge fund Monarch Alternative Capital LP are leading contenders to buy the chain out of bankruptcy court, the people said.
A bidder could offer more than $300 million for the chain, plus assumption of various liabilities, including certain store leases, the people said. Blockbuster remains in talks with creditors on the structure and value of potential bids. The people cautioned that Blockbuster’s sale plans could be delayed.
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