Too much debt, not enough customers, not enough time. Blockbuster files for bankruptcy protection:
The prepackaged bankruptcy case, in the works since the spring, marks the end of an era that Blockbuster and its gold-and-blue torn ticket logo helped establish. Americans used to troop to video stores on Friday for the latest movies. Now, they’re skipping Blockbuster and watching movies from DVD-by-mail services like Netflix Inc., cable video on demand and Redbox vending machines.
The winner? Investor Carl Icahn wipes out Blockbuster’s debt and controls the company. Can he save the company?