The movie-rental company Blockbuster has filed for Chapter 11 bankrupty, allowing it to secure $125 million in debtor-in-possession financing to help keep operations stable while the reorganization takes place.

The Dallas-based company announced Thursday that it has devised a recapitalization plan that will allow them to reduce their debt from $1 billion to $100 million or less.

Management has stated that customers will not feel the impact of the reorganization and that stores will remain open.

"We determined that (bankruptcy) provides the optimal path for recapitalizing our balance sheet and positioning Blockbuster for the future as we continue to transform our business model to meet the evolving preferences of our customers." Jim Keyes, chairman and CEO of Blockbuster, said in a statement Thursday.

If your business is facing Chapter 11 bankruptcy, contact the Arizona Chapter 11 bankruptcy lawyers of Harmon Law Office, LLC at 480-829-0494 to learn more about your rights.