Blockbuster files for bankruptcy

As predicted last month, after a prolonged period of uncertainty US rental firm Blockbuster has finally filed for bankruptcy protection.

The BBC reports that the agreement it has struck with creditors will see its debts effectively cut from $1bn to around $100m.

Its 3,000 US stores will continue trading while the company’s future fate, and possible evolution, are thrashed out.

However, MCV has been assured that Blockbuster UK will continue to trade as normal despite its parent company’s woes.

That process is intended to put Blockbuster US in a stronger financial position as it continues to pursue its strategic plan and transform its business model,” a spokesperson stated/ Blockbuster’s non-US operations and franchises, which are legally separate entities, were not included in the filing and are not party to the Chapter 11 proceedings.

Blockbuster stores and Blockbuster on-line businesses in the United Kingdom are open and serving customers as usual. All Vendors will be paid on-time as normal and there will not be any interruptions to the supply of goods and services.”