Bankruptcy Filing for Blockbuster

DALLAS: Movie rental giant Blockbuster today announced a voluntary Chapter 11 bankruptcy filing and a recapitalization plan that will reduce its debt from almost $1 billion to about $100 million.

All of Blockbuster’s 3,000 U.S. stores remain in operation, as do the DVD vending kiosks, by-mail and digital businesses.

"After a careful and thorough analysis, we determined that the process announced today provides the optimal path for recapitalizing our balance sheet and positioning Blockbuster for the future as we continue to transform our business model to meet the evolving preferences of our customers," said Jim Keyes, chairman and CEO. "The recapitalized Blockbuster will move forward better able to leverage its strong strategic position, including a well-established brand name, an exceptional library of more than 125,000 titles, and our position as the only operator that provides access across multiple delivery channels—stores, kiosks, by-mail and digital. This variety of delivery channels provides unrivaled convenience, service, and value for our customers."