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Franchising firm Blockbuster Inc. said in a regulatory filing that it will likely file for bankruptcy if it cannot find a solution to its massive debt load.
Blockbuster said if its operating results don't improve and if it is unable to refinance or restructure its debt, it "could require us to pursue a restructuring of our indebtedness or file for protection under the U.S. Bankruptcy Code."
The company has to pay $112.5 million this year to service its debt, and it has shown losses of more than $1 billion since 2007.
In 2009, Blockbuster closed 718 company-operated and franchised stores worldwide, including 572 in the U.S. It also sold its 184-store chain in Ireland. [Marketwatch]
The chain has 4,018 company-owned and franchised stores in the U.S.
Barron's reports that Blockbuster is selling its European operations.