Blockbuster loses $360 million US in last quarter

Blockbuster has lined up new financing to give the struggling video rental chain more breathing room as it tries to adapt to ever-fiercer competition from the internet and cable services.

The Dallas-based company announced the refinancing Thursday along with its fourth-quarter results.

Blockbuster said it lost $360 million US, or $1.89 per share, in the three-month period ending in January, primarily because of charges to account for the diminishing value of its 7,500-store franchise.

The results contrasted with a profit of $41 million, or 18 cents per share, in the same period of the previous year.

Revenue fell 12 per cent to $1.38 billion.