SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): March 22, 1999
BLOWOUT ENTERTAINMENT, INC.
(Exact Name of Registrant as Specified in Charter)
Delaware 0-21327 84-0498950
(State or other (Commission File Number) (IRS Employer
Jurisdiction of Identification No.)
Incorporation)
7700 NE Ambassador Place
One Airport Center, 2nd Floor
Portland, Oregon 97220
(Address of Principal Executive Office) (Zip Code)
Registrant's telephone number, including area code: (503) 331-2729
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
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ITEM 3. BANKRUPTCY OR RECEIVERSHIP
On March 22, 1999, Blowout Entertainment, Inc. (the "Registrant") filed
a voluntary petition in the United States Bankruptcy Court for Delaware
(the "Bankruptcy Court"), Case No. 99-681, for protection under Chapter
11 of the United States Bankruptcy Code. Immediately prior to the
filing of its Chapter 11 petition, the Registrant entered into an
agreement for the sale of substantially all of its assets. The
Registrant will continue to operate as a debtor-in-possession, with its
existing officers and directors, subject to the supervision and orders
of the Bankruptcy Court. As of the date of this report, no plan of
reorganization has been filed by the Registrant and no trustee has been
appointed.
ITEM 5. OTHER EVENTS
Immediately prior to the filing of its Chapter 11 petition, the
Registrant entered into an Asset Purchase Agreement with MGA Inc.
d/b/a/ Movie Gallery ("Movie Gallery") pursuant to which the Registrant
agreed to sell substantially all of its assets to Movie Gallery for an
aggregate purchase price of $2.4 million. The purchase price was the
result of arm's-length negotiations between the parties. After the
closing, Movie Gallery is expected to continue the Registrant's
approximately 90 store-within-a-store video rental and sales
operations. Closing on the sale is subject to Bankruptcy Court
approval.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the regis-trant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.
BLOWOUT ENTERTAINMENT, INC.
(Registrant)
By: /s/ Thomas D. Berkompas
-----------------------------------
Thomas D. Berkompas, Vice President
and Chief Financial Officer
Dated: March 23, 1999
