By Brad Wete
Updated September 23, 2010 at 05:19 PM EDT

Former powerhouse video rental chain Blockbuster Inc., filed for bankruptcy protection today, Reuters reports. After years of failing to compete with digital renting rivals Netflix and Coinstar, and closing down stores all over the country, the company filed its Chapter 11 petition with the U.S. bankruptcy court in New York City.

Under the plan, Blockbuster will cut its debt to roughly $100 million from $1 billion.

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Blockbuster expected to file Chapter 11