DVD and games rental company Blockbuster has filed for bankruptcy protection in the US.

The Dallas, Texas-based company said it had made the decision as part of attempts to cut its debts and restructure the business.

Agreements with its creditors will allow it to cut its debts from nearly $1bn to about $100m, Blockbuster said.

Blockbuster's non-US operations are not included in the bankruptcy, as they are legally separate entities.

That includes its 4,000-strong network of stores in the UK, Canada, Denmark, Italy and Mexico.

Blockbuster's 3,000 stores in the US will remain open for the time being, the company's statement said.

It has also secured a new $125m loan it says will allow it to keep working during the restructuring process.

I’ll have a P please, Bob.

I find it really weird how us companies how can go bust, but remain trading.

I find it really weird how us companies how can go bust, but remain trading.

When was the last time you used a Blockbuster. The one where I live became a Tesco Metro some time ago.

It is strange. It does allow companies to clear debts and carry on as a going concern. Though I am surprised that many will lend to companies so readily when they can walk away from debts so easily. Even here with the new pre-pack bankruptcy it has caused a few problems with directors going into bankruptcy and starting up with their debts cleared and the same people running the business.

Sometimes when British companies call in the administrators/receivers they continue to trade.

It happens all the time. You might be confusing administrators and liquidators. Liquidators are the one who shut businesses down and sell off all the assets. Administrators are usually the first port of call. Once they have managed to work out if the business is salvageable and what is left is handed over to the liquidators to deal with.

When was the last time you used a Blockbuster?

About a month ago. But that was the first time in almost a year.