Blockbuster has officially filed Chapter 11 bankruptcy, according to The Hollywood Reporter. A pre-packaged bankruptcy has been approved by 80.1% of its bondholders and will shrink its debt from nearly $1 billion to under $100 million. As part of the plan U.S. operations will remain the same, however the company is pulling out its investment in Argentina. As part of the deal, Blockbuster will reduce the number of brick-and-mortar locations, now that bankruptcy frees it from many lease deals.