The Associated Press September 13, 2010, 7:24PM ET

Blockbuster CFO leaves amid bankruptcy worries

Blockbuster Inc.'s chief financial officer has left the struggling home video rental chain with a possible bankruptcy filing looming.

Thomas Casey's last day as CFO was Saturday, according to documents filed with the Securities and Exchange Commission. His departure came a few days after renegotiating the terms of his severance package.

The revisions qualified Casey for a lump-sum payment of $100,000, besides money owed for his unused vacation. He will also receive $7,000 to cover moving expenses, according to the SEC filing.

Casey had been Blockbuster's CFO for three years.

Blockbuster hired Dennis McGill as its new CFO. McGill formerly was CFO of Safety-Kleen Systems Inc.

Once a home entertainment powerhouse, Blockbuster has been losing market share and money for years as more consumers rent DVDs from video subscription service Netflix Inc. and in-store kiosks that dispense discs for just a $1 per night. More recently, Blockbuster has been hurt by the growing popularity of streaming video over the Internet.

Those trends have prodded Blockbuster to close hundreds of stores, but the company remains saddled with more debt than it can afford to repay. To survive, Blockbuster has acknowledged it may seek Chapter 11 bankruptcy organization.

Blockbuster shares closed unchanged at 9 cents Monday.


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