Retail has been rumbling all month long on rumors of a RadioShack buyout and Blockbuster going bust.
Actually, the video-rental chain’s insolvency is more than mere speculation. As TWICE previously reported, Blockbuster concedes in its latest 10-K that Chapter 11 is likely, due to competition from other DVD and digital delivery services. Indeed, as The Motley Fool points out, the word “bankruptcy” appears in the report no less than 17 times.
Way more speculative is Wall Street chatter regarding a RadioShack takeover, with equity investor Apollo Management mentioned as a potential suitor. Adding grist to the rumor mill was CNBC commentator Jim Cramer, who described the chain as “an LBO waiting to happen,” and Deutsche Bank, which crunched the numbers and determined that a deal could work.
Whatever the outcome for these former partners (remember Blockbuster’s test of RadioShack CE kiosks?), one thing is certain: There are big changes a-coming in retail, and Circuit City was just the prelude.