Blockbuster U.S. Officially File for Chapter 11 Bankruptcy

By Jamie Pert - Sep 23, 2010

It is no secret that digital movie rentals have put a lot of pressure on movie and game rental giants such as Blockbuster, we are now hearing that Blockbuster U.S. has filed for Chapter 11 bankruptcy.

This news isn’t too bad for consumers as all stores will remain open, however one tipster suggests that up to 1,000 stores could potentially close down if things do not improve.

You can find out full information regarding chapter 11 bankruptcy here, to summarize it seems as if this form of bankruptcy is the most flexible and allows businesses to restructure their debt.

In the long run Blockbuster are trying to reduce their debt from $1 billion to $100 million, they will be working on a new business model, however they plan to continue their current customer reward programs.

If you would like to find out full information and see the official press release check out the source link below.

What do you think Blockbuster U.S. need to do to get back on track?

Source: Engadget

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Also See: Blockbuster UK PS4, Xbox One orders online require lettter