NEW YORK ( TheStreet) --

Blockbuster ( BLOKA.PK) may soon be put out of its misery.

According to The Wall Street Journal, a Chapter 11 filing could come any day this week.

The company is in its final stages of preparing the filing, which could arrive as soon as today but most likely Friday or next week, the Journal reported.

The article also notes that Blockbuster will try to continue operations but will shutter 500 to 800 more stores on top of the 1,000 it was already planning to close.

The one-time king of video rentals has steadily lost market share to Netflix ( NFLX), as well as Coinstar's ( CSTR) Redbox kiosks, and has been trying to play catchup in the digital world.

Blockbuster is saddled with nearly $1 billion in debt and is scheduled to repay $42 million to creditors on Sept. 30. The company has already pushed back the payment twice.

Shares of Blockbuster are plunging 23% to 6 cents on over-the-counter trading. But Netflix stock is surging on the news up 4.8% to a new high of $154.22.

Reports also surfaced last week that billionaire investor Carl Icahn holds about one-third of senior debt, which would give him veto power in any restructuring plans.

--Written by Jeanine Poggi in New York.

>To contact the writer of this article, click here: Jeanine Poggi.

>To follow the writer on Twitter, go to http://twitter.com/jpoggi.

>To submit a news tip, send an email to: tips@thestreet.com.

If you liked this article you might like

Dish Has Funny Plans for Blockbuster

Dish Has Funny Plans for Blockbuster

Netflix Dishes About Blockbuster Deal

Netflix Dishes About Blockbuster Deal

Dish Network's Blockbuster Bid Approved

Dish Network's Blockbuster Bid Approved

What the Blockbuster Buyout Means for Netflix

What the Blockbuster Buyout Means for Netflix

Blockbuster Timeline: From Opening to Closing Credits

Blockbuster Timeline: From Opening to Closing Credits