Sep 23, 2010 04:34 PM EST

Blockbuster Files for Chapter 11

In the news today is an item that isn't all that surprising to hear. Blockbuster has filed for Chapter 11 bankruptcy this morning.

The company currently has nearly $1 billion in debt that will be able be cut down to "$100 million or less." They also stated that their stores and websites will still remain in business.

Blockbuster plans on streamlining its business and focusing more on digital offerings. That will include services to mobile devices.

Blockbuster stated, "We continue to explore all of our options and are making good progress in our recapitalization process. Our discussions with the studios and bondholders continue to be productive, and we have every reason to believe we will come out of the recapitalization process financially stronger and more competitively positioned for the future."

Blockbuster has no doubt been declining in sales since Netflix was brought onto the scene, as well as Redboxes.

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