Does anyone out there want to make it a Blockbuster night? *crickets* We’ll take that as a no. The home entertainment chain that ruled the nineties has become obsolete thanks to competitors like Netflix and Red Box. According to the Los Angeles Times, Blockbuster Video plans on filing for bankruptcy this fall due to poor sales and overwhelming debt.

Last week, executives and senior debt holders from Blockbuster Inc. held meetings with “the six major movie studios to discuss their intention to enter a ‘pre-planned’ bankruptcy in mid-September.” After the Chapter 11 filing takes place, Blockbuster plans on using the time to restructure its debt load of nearly $1 billion and escape leases on more than 500 of its 3,425 stores.

This is truly sad news because like most kids raised during the nineties Blockbuster Video was the place to go on Friday nights. Especially when your parents were too tired from work to go to the theater. The chain had such a profound effect on our culture that it even spawned its own awards show. Remember the Blockbuster Entertainment Awards?

There are only so many things they can do right now to improve their situation with such a large amount of debt. They do have their online rental service, which they could stick with and expand but the competition is stiff. Netflix has a pretty solid following right now and they offer a lot more than just movies.

What do you think Blockbuster can do to redeem itself? Do you think all hope is lost for the company?