Summary Box: Debt, changing media habits lead Blockbuster to file for bankruptcy protection

Summary Box: Blockbuster files for Chapter 11

THE NEWS: Movie-rental chain Blockbuster Inc. filed for Chapter 11 bankruptcy protection on Thursday after facing mounting losses, rising debt and competitors that cater better to Americans’ changed media habits.

THE CONTEXT: Blockbuster, based in Dallas, has closed stores and admitted to liquidity problems as competition increased from video subscription services like Netflix Inc., video on demand and services such as Coinstar Inc.’s Redbox.

WHAT’S NEXT: Blockbuster’s 3,000 U.S. stores will stay open as the company evaluates them and works on ways to return to profitability.