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Blockbuster. Lessons learnt

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The least surprising business failure this year is Blockbuster. Surprisingly bought out of administration a few months back, it has collapsed again. Here is a decent article

http://www.independent.co.uk/news/business/analysis-and-features/shopping-habits-blockbuster-is-heading-the-way-of-woolworths-and-mfi-8944583.html

What do we learn from this? Firstly, as a credit manager, when judging a business you have to look a lot further than the last filed accounts. This is always an issue with credit reporting and why i will stress over and over that such reports are merely the starting point for a decision

And here is the most interesting paragraph

In 2000, Blockbuster’s American parent company, bloated and complacent from the spoils of such success, turned down the chance to buy Netflix for $50m. Today, it is worth an extraordinary $20bn.

 

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