Rumor: Blockbuster Filing for Bankruptcy Next Month

The much-documented decline of Blockbuster is drawing to a halt earlier than expected, with key people involved in the movie business touting a bankruptcy notice for the big blue just next month.

Supposedly meetings were held last week with six of the big movie studios, with Blockbuster alerting them to their soon-to-be bankruptcy move due in the middle of September.

Of course, filing for bankruptcy doesn't necessarily mean they're closing shop for good. Instead, they are expected to close 500 of its 3,425 stores across the States, joining the 1,000 they shuttered in the last year.

What's Blockbuster's next move? Why, continuing their assault on the already-crowded mail-order rentals and presumably, digital rentals market. Not to mention those SD card rental kiosks. [LA Times]