Debt, Changing Media Habits Topple Blockbuster

Summary


NEW YORK - Blockbuster Inc., once the dominant movie rental company in the U.S., filed for Chapter 11 bankruptcy protection on Thursday, reeling from mounting losses, rising debt and competitors that have better catered to Americans' changed media habits.

For now, Blockbuster will continue to operate its 3,300 U.S. stores, although analysts expect hundreds of them to close under new owners led by billionaire investor Carl Icahn. The Dallas-based company has about 25,500 employees, including 7,500 full-time workers.

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Debt, Changing Media Habits Topple Blockbuster

The prepackaged bankruptcy case, in the works since the spring, marks the end of an era that Blockbuster and its gold-and-blue torn- ticket logo helped establish. Americans used to troop to video stores on Friday...

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