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By Steve Watts, 09/23/2010 window.fbAsyncInit = function() { FB.init({appId: '112522758785466', status: true, cookie: true, xfbml: true}); }; (function() { var e = document.createElement('script'); e.async = true; e.src = document.location.protocol + '//connect.facebook.net/en_US/all.js'; document.getElementById('fb-root').appendChild(e); }());
It has been a long time coming, and today the move analysts have predicted was made official. Blockbuster stores have filed for chapter 11 bankruptcy protection in the U.S., reports BBC News. The filing doesn't include Blockbuster stores in other countries, like the U.K., Canada, Denmark, Italy, and Mexico. Here in the states, it will allow the company to reduce its debts from almost $1 billion to a relatively small $100 million. The company has also secured a loan of $125 million to stay open during the restructuring, so its U.S. stores and distribution centers will remain in business.
Blockbuster has struggled to deal with competition from Netflix, and company chief Jim Keyes called this move the "optimal path" for the rental service to "meet the evolving preferences of our customers." The company plans to push deeper into kiosk, mail, and digital rental services, after competition in those areas has edged it out of the market.
EDIT - This story has been updated to reflect the difference between "bankruptcy" and "bankruptcy protection."
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