Blockbuster’s Silence on Q2 Results Fans Bankruptcy Rumors

Updated: With a $42 million debt payment looming, the video rental chain delays earnings announcement until tomorrow

Last Updated: August 12, 2010 @ 5:57 PM

(Updated 5:35 p.m.: Blockbuster will release its latest earning's report on Friday and not as it previously announced on Thursday evening, according to a company spokesperson.

She added that the delay in releasing the chain's earnings was unrelated to its current financial difficulties.

"Due to the review process and the way the timing came together, the 2Q earnings release and the 10Q will be released together tomorrow," the statement reads.  "It's not a sign of anything other than these factors.")

Earlier:

Blockbuster picked a hell of a time to go off the grid.

The financially strapped video rental chain was scheduled to release its second quarter earnings after the markets closed on Thursday. As of this writing, however, Blockbuster has yet to share its latest financial results.

In fact, a Blockbuster spokesperson told TheWrap that she did not know if an earnings announcement would even be made today.

It's an awkward time to remain mum. Friday marks the day that Blockbuster is scheduled to make a $42 million debt payment (a deadline that has been extended several times), and the company is fighting off  bankruptcy rumors.

There is widespread speculation on Wall Street that Blockbuster is poised to file for Chapter 11 in the coming days. Adding fuel to the fire, Blockbuster announced on Wednesday that it would be holding its second quarter conference call.

"In light of the sensitive nature and fluid, rapid pace of ongoing negotiations related to its recapitalization, the Company will not host a conference call in conjunction with the earnings release," Blockbuster's statement read. 

For the past five years, Blockbuster has been losing ground to rivals Netflix and Redbox. At the same time, it has been laboring under nearly $900 million in debt. With shares trading at less than a dollar, the company de-listed from the New York Stock Exchange in July.