Blockbuster investor Wattles Capital buys 375,000 shares

By Lisa Kerner

Charlotte, N.C., March 16 - A group of Blockbuster Inc. investors led by Wattles Capital Management, LLC bought 375,000 shares of the company's stock between Feb. 6 and March 4 priced from $0.82 to $1.08 each, it was reported in a schedule 13D filed with the Securities and Exchange Commission on Monday.

According to the filing, Wattles believes that Blockbuster does not have a motive to reorganize under Chapter 11 and also believes the company will be successful in refinancing its revolving bank line of credit or will be able to use cash flow from operations to meet its August repayment obligations and 2009 liquidity needs.

Wattles Capital beneficially owns 4,841,937 shares, or 4.0%, of the Dallas-based provider of in-home movie and game entertainment.

Mark J. Wattles, sole member of Wattles Capital, indirectly owns a majority interest in Ultimate Acquisition Partners, LP, which owns and operates consumer electronics retail stores under the name Ultimate Electronics.

Wattles founded Hollywood Entertainment Corp., which was sold to Movie Gallery, Inc. in 2005, the filing said.

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