Blockbuster video chain files for bankruptcy

Troubled video-rental chain Blockbuster Inc today filed for bankruptcy protection.

In a submission to the US Bankruptcy Court in the Southern District of New York today, the company said it plans to recapitalise its balance sheet and transform its business model.

Its stores will remain open as the company reorganises.

The company, which had warned investors it might file for bankruptcy protection, was delisted in early July by the New York Stock Exchange.

The bankruptcy petition only applies to the firm's US operations.