DALLAS, April 2 (UPI) -- A creditor group said it would take over bankrupt U.S. movie rental firm Blockbuster for $290 million, but the business would have to change its focus.
"We are comfortable the assets have a value at least equal to what we are offering to pay," said Chris DiMauro, managing director at Houlihan Lokey, a consulting firm that is working with creditors Monarch Alternative Capital, Owl Creek Asset Management, Stonehill Capital Management and Varde Partners, The Los Angeles Times reported Saturday.
DiMauro said Blockbuster's future depended on finding a "niche audience" as opposed to its past practice of being "all things to everyone."
The $290 million offer can be considered an opening bid to Monday's auction for the company that was valued at $500 million when it filed for bankruptcy in September.
Blockbuster has had trouble keeping up with the more nimble Netflix and the more cost-effective Redbox, which operates distribution kiosks. If it is to survive, analysts say Blockbuster must continue to shutter retail outlets. It is down to 1,751 stores, about half what it operated six months ago.
Bids at the auction are expected from maverick Wall Street investor Carl Icahn, Dish Network and South Korean firm SK Telecom, the newspaper said.
