Report Blockbuster To File Chapter 11 Bankruptcy

08.27.10 | FL News Team

(Los Angeles, CA)  --  Blockbuster, one of the pioneer big-box movie rental businesses, will file for bankruptcy next month.  The "Los Angeles Times" reports the company hopes to use the Chapter 11 filing to restructure a nearly one-billion-dollar debt and get out of leases on hundreds of stores across the U.S.  Blockbuster reportedly has lost a total of one-point-one-billion dollars over the past two years and has found itself unable to compete against newer companies like Netflix and Redbox.

Blockbuster reportedly met with its top debt-holders and executives of six major movie studios recently to announce the so-called "pre-planned" bankruptcy that would be filed in mid-September.  Blockbuster was delisted by the New York Stock Exchange last month because its price had fallen below a dollar.  Blockbuster stock closed Thursday at eleven cents a share.