Embattled Blockbuster Inc., the video rental giant that recently said it will close 500 more stores, faces Chapter 11 bankruptcy if it fails to restructure $957 million in debt. The company's stock lost a third of its value to close at 12 cents a share Wednesday after an SEC filing disclosed slumping business conditions "raise substantial doubt about our ability to continue as a going concern." Blockbuster, which has 337 stores left in Florida and about 45 in the Tampa Bay area, is negotiating a debt-for-stock swap with lenders, mapping plans to cut costs another $200 million and proposing to put its Canadian operation up as collateral for lower DVD prices from Hollywood studios. Blockbuster, which has 4,018 stores across the country, lost $558 million in 2009 when revenues plunged 20 percent to $4 billion.
Blockbuster video faces Chapter 11 bankruptcy
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