Blockbuster’s woes are deepening. The company warned in an SEC filing that while it had reached an agreement with lenders to refinance debt due in August, the deal was subject to certain conditions that it might not be able to meet. “Even if the amended credit facility is funded upon the terms contemplated, we may not have sufficient liquidity to finance the ongoing obligations of our business, which raises substantial doubt about our ability to continue as a going concern,” the company said in the filing.
The “going concern” notice is the latest development in what has been an especially rough year for the movie-rental chain, which has a heavy debt load and is under continued attack from competitors, like Netflix (NSDQ: NFLX). The company’s shares dropped 90 percent in early March on rumors that it might file for bankruptcy — and the company has had to postpone a redesign of its stores to save cash.