Public Media Works, the company behind what was to be an honest-to-goodness competitor in the movie rental kiosk market, filed for Chapter 11 bankruptcy protection this week. Its line of "Spot. the Difference" rental kiosks offered both DVD and Blu-ray movies at lower prices than both Blockbuster Express and market leader Redbox.
Citing an "inability to identify new sources of liquidity necessary to redeploy and market its kiosks," the company hopes the filing will help it get back on its feet.
"We believe that Chapter 11 is necessary to restructure the Company's outstanding debt, and establish a sustainable, long-term capital structure for the business," said Martin W. Greenwald, Public Media Works CEO. "The Company has concluded that it would be unable to secure the financing it requires in the absence of a Chapter 11 plan of reorganization which, if successful, can clean up the Company's balance sheet."
Leading up to the filing, the company had attempted to minimize expenses by killing off the "Spot" line, which launched exclusively in California earlier this year. A summer expansion into Vancouver, British Columbia proved unhelpful. According to a (now-defunct) FAQ, Spot kiosks offered twice the capacity of Redbox and quicker overall service at lower prices.
Public Media Works confirmed it is currently seeking a debtor in possession loan to keep it on life support pending a full court-approved Plan of Reorganization. "Our goal is to emerge from Chapter 11 as soon as possible," said Greenwald. (via Home Media Magazine)
