Sony Disputes How Much Bankrupt Hastings Entertainment Owes Studio19 Jul, 2016 By: Erik Gruenwedel
Sony Pictures Home Entertainment says Hastings Entertainment owes the studio more than the bankrupt Amarillo, Tex.-based retailer listed in a with federal bankruptcy court in Delaware.
Hastings, which operates 128 retail stores in the Southwest, filed for Chapter 11 bankruptcy protection June 13, citing $80 million in secured loan debt and another $59 million in trade bills (document mandating specific payment). The company lost nearly $17 million on revenue of $401 million in 2015.
Atlanta subsidiary MovieStop, which, along with Hastings, was acquired in 2014 by Joel Weinshanker, began liquidation at the beginning of June.
Sony, in a July 14 filing, said Hastings owes it more than $309,000 for a DVD/Blu-ray Disc revenue-sharing agreement through June 30. The retailer says the amount is about $204,000.
“The amount due may have increased and may continue to increase from July 1, 2016 forward,” Sony wrote in the complaint. “SPHE maintains detailed records of the number of DVDs sold and delivered to Hastings.
With Hastings’ assets reportedly drawing auction interest from liquidator Gordon Brothers Group and Bloomberg L.P., a software unit owned by former New York mayor Michael Bloomberg, Sony is requesting an audit and full payment for titles rented and sold.