Blockbuster Expected To File For Bankruptcy
Posted on Wed Sep 22, 2010 02:24 PM PDT

Blockbuster_Video200.jpgMANHATTAN, New York (X17online) - Blockbuster Video will be filing for Chapter 11 bankruptcy protection by the end of this week.

According to the Wall Street Journal, Blockbuster investor Carl Icahn is hoping to lead the company out of debt. By filing Chapter 11, the video rental giant will be allowed to continue operating while the financial situation is worked out.

The plan is to have "creditors convert Blockbuster's debt into ownership stakes in the company, while lower-ranking creditors would lose their holdings," according to the WSJ.

The first Blockbuster store opened in Dallas, Texas on October 26, 1985.