Blockbuster Inc. is reportedly planning to file for Chapter 11 bankruptcy within the next few days. The company also plans to close “hundreds more stores” say sources who are familiar with the matter. The company is about $900 million in debt, according to to SEC filings.
Currently, the company is working to convert $630 million worth of debt into equity. The company said in a statement that “discussions with the studios and bondholders continue to be productive,” and that they have “every reason to believe we will [come] out of the recapitalization process financially [stronger] and more competitively positioned for the future.”
It seems that companies and services such as Netflix and Apple have taken a chunk of revenue that once used to belong to video rental stores.
Via Reuters
