Blockbuster files for bankruptcy in the US

Rental chain on the brink

Struggling video and games rental giant Blockbuster has been forced to file for bankruptcy protection in the US.

The company has made the move to allow them to cut their debts from a whopping 1 billion USD down to a more manageable 100 million USD.

Blockbuster has made assurances that their 3000 stores in the US will continue to trade as normal, as will the company's UK arm.

A company spokesperson told MCV: "That process is intended to put Blockbuster US in a stronger financial position as it continues to pursue its strategic plan and transform its business model. Blockbusters non-US operations and franchises, which are legally separate entities, were not included in the filing and are not party to the Chapter 11 proceedings."

The statement continued: "Blockbuster stores and Blockbuster on-line businesses in the United Kingdom are open and serving customers as usual. All Vendors will be paid on-time as normal and there will not be any interruptions to the supply of goods and services."

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