Blockbuster: Filed For Bankruptcy Chapter 11 Proceedings

Blockbuster, rental specialists in DVD, video games and Blu-Ray officially announced that it has filed for bankruptcy under “Chapter 11” proceedings. To some, this news is no surprise. Blockbuster have had to contend with ever increasing competition from the likes of video renting “Netflix” and “Redbox”, therefore the chain store Blockbuster have been losing important sales and revenue.

Indications show that Blockbuster’s current debt would be reduced from $1 billion to about $100 millon. Speculation has grown whether the chain will have to “shut up shop” across some stores. According to Thomas at Engadget, presently, it seems that all 3,000 stores in the U.S will remain open for business as well as DVD vending kiosks, by mail and digital businesses.

Blockbuster will be running its operations in different countries with the exception of Argentina. Stores in Canada, Denmark, Italy, Mexico and the UK are all operated and funded independently but unfortunately Argentina which relies on funding has seen a decline in sales.

Do you use Blockbuster, and if so what do you prefer to rent out? Give us your comments. To read more on this check out Engadget