Blockbuster files for bankruptcy protection

NEW YORK In a submission to the U.S. Bankruptcy Court in the Southern District of New York on Thursday, the company said it plans to recapitalize its balance sheet and transform its business model.

Once a home entertainment powerhouse, Blockbuster has been losing market share and money for years as more Americans rent DVDs from subscription service Netflix Inc. and popularity surged for streaming video over the Internet.

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

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