NEW YORK (
) -- Blockbuster is surging in following
official announcement that it will shutter all of its stores and liquidate operations.
Wall Street Journal
broke this news last month, Movie Gallery's formal announcement is still sending shares of Blockbuster up 10.4% to 43 cents in Tuesday afternoon trading.
The elimination of Movie Gallery could provide Blockbuster with a much-needed boost. Blockbuster, which has also said it could be on the cusp of a bankruptcy filing itself, has been struggling to remain relevant as the competition heightens from
and DVD kiosks like
Blockbuster said earlier in the year that it may be forced to file for bankruptcy if it cannot shore up enough cash to repay its debt. Blockbuster currently carries roughly $1 billion in debt.
-- Reported by Jeanine Poggi in New York.
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