Blockbuster Inc. announced that it will start closing an additional 186 stores by the end of the month, making the total closed across the country 1,145 locations. This represents nearly one-third of the company's locations.

According to papers filed in the U.S. Bankruptcy Court in Manhattan, the company will reject 186 leases by March 31 in an effort to comply with its bankruptcy agreements. This newest batch of closings will mainly affect stores in Texas and California. This news comes in the wake of last month's approval by Judge Burton R. Lifland to auction off Blockbuster Inc. The company has already received one bid of $290 million from a group of senior bondholders from Monarch Alternative Capital in New York. This was good news for the company as it would mean that total liquidation could be avoided for now.

Next month, the company's assets will be auctioned off during which time Monarch's initial offer could be beaten. Although the company originally filed under Chapter 11 bankruptcy lackluster sales over the holidays have forced the company to sell itself.

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