Beleaguered rental chain Blockbuster's financial woes have gone from bad to really bad, with the LA Times reporting that the company will next month file for bankruptcy.
According to "people who have been briefed on the matter", Blockbuster has already begun meeting with Hollywood's big movie studios to discuss the move, which its hoped will help them restructure $1 billion in debt and allow the company to get out of leases on around 500 of its stores.
In total, between 500-800 stores (of a total of 3,425) will be shuttered as part of the move, to go with the 1000 closed last year.
It's hoped that filing for bankruptcy will allow the company to continue to expand into new markets like automated kiosks and online streaming, but even if just under 3000 stores survive this mess, it sounds like the days of the bricks-and-mortar Blockbuster store could soon be coming to an end.
Blockbuster tells Hollywood studios it's preparing for mid-September bankruptcy [LA Times]
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