How Much Will the Blockbuster Chain Sell For at Auction?

Last fall, Blockbuster Inc. filed for Chapter 11 bankruptcy after accumulating nearly $1 billion in debt and today, the most popular movie-rental chain of the '90s will sadly be auctioned off to the highest bidder. So just what does the cash-strapped company expect to net?

According to the Wall Street Journal, a group of hedge funds led by Monarch Alternative Capital started the bidding at $290 million. Other companies including TV provider Dish Network Corp. and South Korea's SK Telecom Co. have also offered to purchase the rental chain for approximately $290 million.

Bidders are divided between liquidators -- who would close the remaining 2,400 U.S. stores -- and other suitors who would continue using the Blockbuster name for digital and vending businesses. The Blockbuster legal team is currently deciding which offer, or combination of offers to accept. The auction is supposed to run into the night and possibly until Tuesday, so you still have time to return that copy of Finding Forrester.

· Blockbuster Auction Under Way in Bankruptcy Court [WSJ]