Blockbuster expected to file Chapter 11 |

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Blockbuster expected to file Chapter 11

Reuters reports that Blockbuster, the Dallas-based rental retailer, is expected to file for Chapter 11 bankruptcy as early as Wednesday. The company, struggling to compete with computer downloads and cheaper rental options, has more than $900 million of debt. Blockbuster and debt holders are working on a plan to continue operating, but hundreds of stores will be shut down. ”We continue to explore all of our options and are making good progress in our recapitalization process,” Blockbuster said in an emailed statement. ”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.”