After struggling with the same issues as Blockbuster, i.e. digital technology stealing market share, Movie Gallery was forced into Ch. 11 filing in February 2010. At the time Movie Gallery also said that it would continue to operate while in bankruptcy, and continue to pay employee salaries and benefits, honor customer gift cards and store credits, and pay vendors.

Then two months later, on April 30, 2010, Movie Gallery announced it was closing and liquidating all of its stores per a Ch. 7 bankruptcy filing. Of course, that was the second bankruptcy filing for Movie Gallery in a three year period.

While Blockbuster may have more clout that Movie Gallery's Hollywood Video, this last scenario isn't entirely impossible.

What do you think, will Blockbuster be able to emerge a stronger company or fall into oblivion? Take our poll below, and see what TheStreet thinks....

What's next for Blockbuster after it emerges from Chapter 11?

It issues an IPO and continues with business as usual.
It's forced to file Ch. 7 and liquidate its assets.
It's bought out by another company or private-equity firm.
It shutters most store operations and continues as a digital business.

--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.

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