Blockbuster files for bankruptcy protection

[September 23, 2010]  NEW YORK (AP) -- Troubled video-rental chain Blockbuster Inc. is filing for bankruptcy protection but will keep its stores and kiosks open as it reorganizes.

In a submission to the U.S. Bankruptcy Court in the Southern District of New York on Thursday, the company said it plans to recapitalize its balance sheet and transform its business model.

Once a home entertainment powerhouse, Blockbuster has been losing market share and money for years as more Americans rent DVDs from subscription service Netflix Inc. and popularity surged for streaming video over the Internet.

The company, which had warned investors it might file for bankruptcy protection, was delisted in early July by the New York Stock Exchange.

[Associated Press]

Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.