Another high street retailer looks set to bite the dust for the time being as movie and video games rental company Blockbuster files for bankruptcy in the U.S.

Racking up debts of nearly $1bn the company looks set to close 4,000 stores worldwide as it restructures its organisation.

"Blockbuster will move forward better able to leverage its strong strategic position, including a well-established brand name, an exceptional library of more than 125,000 titles, and our position as the only operator that provides access across multiple delivery channels - stores, kiosks, by-mail and digital," Blockbuster's chief executive told the BBC.

The digital download market, piracy and postal services such as LoveFilm have created stiff competition for the Texas-based company who have struggled to keep up with the changing trends in the way that media is now distributed.

A $125 million loan will enable the company to keep open 3,000 of its stores across the U.S. as it looks to bounce back from a depressing balance sheet.