Blockbuster CFO Quits13 Sep, 2010 By: Erik Gruenwedel
Blockbuster Inc. Sept. 13 disclosed that CFO Thomas Casey tendered his resignation, effective at the close of business Sept. 11, according to a regulatory filing.
Casey, who joined Blockbuster in 2007, had entered into an amended employment agreement Sept. 7, which apparently included an additional severance payment. Dallas-based Blockbuster said it hired Dennis McGill to serve as EVP and CFO of the fiscally challenged DVD/Blu-ray Disc rental chain.
The chain has been struggling to recapitalize and restructure more than $950 million in debt. Casey’s inability to broker a deal with bondholders perhaps sealed his fate, according to one studio source
“They pushed him out and gave him a departing gift with the bonus,” the source said.
Casey’s departure would provide further credence to previous reports that Blockbuster intends to file for bankruptcy sometime this month.
“It’s obviously not a good sign that in this very difficult and challenging financial times for Blockbuster to lose [its] CFO,” said Edward Woo, analyst with Wedbush Morgan Securities in Los Angeles. “This just adds more uncertainty to a very [serious] situation.”
Last month Blockbuster hired former Movie Gallery executive Roger Dunlap as head of North American store operations. Dunlap replaced Douglas McHose, who resigned Aug. 20.