Wednesday, March 17, 2010

Blockbuster Shame and Hypocrisy

Blockbuster (BBI) is contemplating bankruptcy. Go figure look at the stock price in the past year and see what the market has been forecasting. Yet the board and senior executives have been making these positive noises about the future.

I am always shocked and appalled that board members resign just before the boat sinks. Take for example that Jackie Clegg tendered her resignation from the Company's Board of Directors, effective March 5, 2010. The press release went on to say “In tendering her resignation, Clegg, who has served as an independent member of the Blockbuster Board of Directors for the past six and a half years, stated that her decision was difficult and based on personal decisions to pursue other business and public service opportunities. She also stated that she has no doubt the Blockbuster Board of Directors will take advantage of opportunities that are presented and the Company will flourish in the future.”

Lady you sat on the board and watched the boat sink. Shareholder wealth has been destroyed in large part because of your poor stewardship. You were in good company, you do not have sole responsibility but never the less this is a catastrophic failure. Will shareholders sue under director and officer liability insurance? How will Carl Icahn’s role be viewed as? He got off the boat just recently.