After announcing its “pre-planned bankruptcy" plans last month, Blockbuster is now ready to file for Chapter 11 bankruptcy.
According to the statement, Blockbuster will "evaluate its U.S. store portfolio with a view towards enhancing the overall profitability of its store operations." The Company hopes that its plan will bring its approximately $1 billion debt down to $100 million or less.
All Blockbuster stores, DVD vending kiosks, by-mail and digital businesses are intact and open...for the moment. The former rental giant's ventures abroad are also still running, except they've dropped all funding to operations in Argentina.
Why Blockbuster has any retail locations still open is beyond me. The kiosk idea was an interesting one, but I can't see that being a lucrative route for long. If Blockbuster desperately wants to hold on to its stores, the company should consider revamping them into a place that actually sells things (i.e. DVDs, video games, movie memorabilia, who knows) because its obvious no one is renting anything there anymore.