Blockbuster Ready To File For Chapter 11
Blockbuster bosses are hoping to save their company by going bankrupt. The Dallas-based DVD rental chain has fallen on hard times because, with the advent of other technologies, hardly anybody goes to a store to rent DVDs anymore. Now, the Wall Street Journal reports Blockbuster is in the final stages of preparing a long-awaited Chapter 11 bankruptcy filing and it could come as early as today. Under the plan, the company wouldn’t go out of business but, instead, would consolidate into a smaller number of locations while focusing more on digital distribution.
Blockbuster recently outlined plans to lock up nearly a thousand stores, and more closures appear to be on tap. Somewhere between 500 and 800 additional stores could close under Blockbuster’s current bankruptcy plan.