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Blockbuster Files For Bankruptcy

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Sonora, CA — Blockbuster Video has filed for Chapter 11 bankruptcy protection, but doesn’t have any immediate plans to close any of its stores.

Blockbuster has nearly $1 billion in debt and plans to reorganize by swapping debt for equity with bondholders. The video rental chain has been hit hard by mail subscription services, on demand video and Red Box kiosks. Blockbuster has locations in Angels Camp and Sonora.

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