Blockbuster may file for Chapter 11

Blockbuster is almost a $1 billion in debt and planning to close even more stores. It told federal regulators bankruptcy is likely because of revenue losses and increasing competition.

August 27, 2010 2:13:15 PM PDT
Blockbuster told Hollywood studios it's now preparing to file for Chapter 11 in Sept.

The chain that once dominated the home video rental business has racked up a $1 billion debt.

Customers are moving away from renting at retail locations, and toward online rental services like Netflix, and movies-on-demand.

Blockbuster hopes to come back after restructuring, and continue to offer new movie rentals.