Blockbuster, once the king of video rentals, is preparing to file for bankruptcy next month. Blockbuster hopes to use time in Chapter 11 to restructure their debt load. The company has nearly $1 billion in debts and hopes to escape leases on over 500 stores.
The Blockbuster bankruptcy comes largely as a result of the company's inability to shift gears into the digital age. Netflix and Redbox made renting movies online and from kiosks faster, easier and cheaper than going to a Blockbuster. Even as the company began offering services similar to Netflix, the Blockbuster bankruptcy became inventible as the company was sinking under its massive debt, reports The Los Angeles Times.