BLOCKBUSTER TO FILE FOR BANKRUPTCY IN SEPTEMBER

According to several LA Times sources, Blockbuster will be filing for bankruptcy protections next month.  According to the sources Blockbuster's chief executive met with representatives of their major debt holders and  the six major movie studios to announce the companies decision.

Blockbuster is trying to restructure it's existing $920 million in debt and keep the movies coming in.  It is expected to close another 500+ of it's remaining 3,245 US stores.  Since 2008 Blockbuster has lost $1.1 billion.  It is expected that Blockbuster's senior debt holders will hold a significant portion of the company after bankruptcy is over.