DVD Kiosk Operator Files Bankruptcy27 Sep, 2011 By: Erik Gruenwedel
Six months after Public Media Works launched “Spot. The Difference” movie rental kiosks, it files Chapter 11
Public Media Works, operator of “Spot. The Difference” movie rental kiosks, has filed a voluntary petition under Chapter 11 of the U.S. Bankruptcy Code.
The Sept. 26 filing didn’t immediately disclose the Sausalito, Calif.-based company’s fiscal liabilities and assets.
PMW in March rolled out 25 “Spot. The Difference” kiosks (www.spotrental.com) in Riverside County in Southern California offering Blu-ray Disc rentals for 89 cents a night, among other perk pricing.
At a time when movie rentals at Redbox and Blockbuster Express kiosks, among others, continue to increase market share in home entertainment, the PMW bankruptcy underscores the importance of high-traffic retail locations, among other issues.
“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,” CEO Martin Greenwald said in a statement. “We have worked tirelessly during the past several months to develop our plans, address our existing financial obligations and seek further funding.”
Greenwald said the company is seeking debtor-in-possession financing while it restructures, cleans up the balance sheet and maintains minimum operations.
“Our goal is to emerge from Chapter 11 as soon as possible,” he said.
A representative was not immediately available for comment.