NEW YORK, Feb. 22 (UPI) -- U.S. video company Blockbuster Inc. has filed a plan to sell itself to a holding company made up of its four largest creditors, court records show.
Blockbuster has been operating under Chapter 11 bankruptcy protection for five months and continues to lose money, the Los Angeles Times reported Tuesday.
The first bid for the company is a $290 million offer from Monarch Alternative Capital, Owl Creek Asset Management, Stonehill Capital Management and Varde Partners.
"This will … allow for the consolidation of ownership of the company to those with a clear and focused vision for Blockbuster's future," Chief Executive Officer Him Keyes said in a statement.
Maverick investor Carl Ichan could not be reached for comment, the Times said, but some are expecting he would also make a bid for the company after rapidly increasing his shares in Blockbuster in the fall.
Time could be a critical factor, as continued losses pare down the options for the company that operates 3,400 brick and mortar outlets, which put it at a disadvantage next to rivals Netflix and Redbox Automated Retail.
Blockbuster is scheduled to close 609 stores by the end of February. It has lost $11.7 million in five weeks ending Jan. 2, the Times said. In that period, revenues reached $206.5 million.
Two of its principal suppliers, meanwhile, have filed motions in the U.S. Bankruptcy Court in New York for immediate payment.
Summit Entertainment has filed a motion to collect $9.5 million, while 20th Century Fox filed a claim for $7 million.
