The Wall Street Journal cites people familiar with the matter that say Blockbuster is in the final stages of preparing a bankruptcy filing that could be filed as soon as today. The Journal reports that Blockbuster is likely to file for Chapter 11 bankruptcy and announce a restructuring plan sometime in the next week, but that an announcement could possibly come before Friday.
Tech Trader Daily reports that though the plan would wipe out Blockbuster's debt, it involves closing between 500 and 800 brick and mortar stores in favor of digital distribution. WSJ sources say the restructuring plans are all but completed but creditors are haggling over the finer details.
In January of this year, Blockbuster announced the closure of 250 stores. Just a month later, the company announced they would be closing a further 500 stores. At the time, CEO Jim Keyes said that though they were optimistic, the next year to 18 months would prove challenging as they try to carve out new distribution channels.
"While we believe the future is bright, the next 12 to 18 months will remain challenging as we balance the secular decline of a single channel with the ascension of emerging channels, such as vending and digital," Keyes said in a statement.