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REPORT: BLOCKBUSTER WILL DECLARE BANKRUPTCY IN TWO WEEKS

August 27, 2010 by · 1 Comment 

Blockbuster, the last remaining home-video rental chain covering the entire country, has finally concluded that it no longer can stave off bankruptcy and plans to enter Chapter 11 in about two weeks, the Los Angeles Times reported today (Friday), citing several people familiar with the situation. The company then plans to cancel its leases at 500-800 unprofitable stores and shut them down. It has shuttered about 1,000 in the past year alone, the newspaper said. Blockbuster has been struggling with a debt load of close to $1 billion as well as competition from online DVD/Blu-ray disc renter Netflix, kiosk operator RedBox, and various video-on-demand services.