Blockbuster Prepares for Bankruptcy

According to sources close to the company, Blockbuster is preparing to file for bankruptcy with plans to close hundreds of more stores as they battle against cheap online options (Netflix) and kiosks (Redbox). The company hopes to convert debt to equity and wipe out debt by filing for Chapter 11 bankruptcy. The company currently has $900 million in debt and hopes to rid itself of most of the debt.