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In a move that should come as a surprise to absolutely no one, movie rental chain Blockbuster is telling Hollywood studios that it plans for file for bankruptcy next month, The LA Times reports.
Citing "people who have been briefed on the the matter," The LA Times says Blockbuster and its senior debt holders sat down with the six major movie studios last week to discuss "pre-planned" bankruptcy proceedings in mid-September. Blockbuster's goal is use its time in Chapter 11 to restructure mounting debt, which now sits at almost $1 billion.
Blockbuster has already closed almost 1,000 stores just in the last year, and as a result of its restructuring, more closures are coming, perhaps as many as 800, executives said. Once Blockbuster exits bankruptcy -- if it does -- the company sees itself growing through non-retail initiatives, such as expanding the number of Blockbuster-branded kiosks.
Much more here.
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