Blockbuster US is still operating. They are in Chapter 11 bankruptcy which means that shareholders, vendors and some debt holders are going to take a bath. The new owners, who are some of the former debt holders, will be restructuring the business. After shedding most of their debt and rationalizing their stores Blockbuster US may be a viable business.
In Canada the situation is a little different (for now):
http://www.cbc.ca/fp/story/2010/09/23/3570473.html
Personally, if Blockbuster Canada were to disappear I would miss them very much. You can't get new Blu-ray releases nearly as quickly from Zip.

Last edited by Dundas; 09/24/10 09:42 PM.