As expected, Bloomberg reports that Blockbuster filed for Bankruptcy protection this morning.
Blockbuster Inc., the world’s biggest movie-rental company, filed for bankruptcy after failing to adapt its storefront model to online technology pioneered by rivals such as Netflix Inc.
The company listed assets of $1.02 billion against debt of $1.46 billion on a Chapter 11 petition filed today in U.S. Bankruptcy Court in New York. The company said it reached a deal with a group of bondholders on a plan of reorganization and secured a $125 million loan to finance operations.
After the dust clears, Blockbuster will only have $125 million in debt.
Blockbuster issued a press release stating that the stores, kiosks and online service would operate as normal during the proceedings, and they would still honor gift cards, store credits and Blockbuster Rewards.