Blockbuster may file for bankruptcy

DALLAS, Texas Blockbuster reported that it may need to file for bankruptcy if it can't pay off its debt.

The company announced in an SEC filing that because it "no longer have the ability to borrow under a revolving credit facility, an inability to meet [its] obligations with respect to [its] inventory purchases may result in our need to file for protection under the U.S. Bankruptcy Code."

Late last month, Blockbuster reported a net loss for the fourth quarter of 2009 was $434.9 million, or $2.24 per share, which includes the non-cash charge of $369.2 million for the impairment of goodwill and other long-lived assets.  This compares with a net loss of $359.8 million, or $1.89 per share, in the fourth quarter of 2008, which included the $435.0 million non-cash charge for the impairment of goodwill and other long-lived assets.