Last year, Blockbuster filed for Chapter 11 bankruptcy, the availabe bankruptcy option available for businesses to get out of debt.

Blockbuster has signed a deal worth $290 million to get out of their bankruptcy by a investor’s group, according to a news release.

Blockbuster announced it has reached agreement on framework of a plan to recapitalize its balance sheet and strengthen its financial position.

Other video rental stores like Hollywood Video and Movie Gallery filed for bankruptcy last year as well, and many of those stores were forced to close.

Four Blockbuster stores in Iowa are expected to close — one store in West Des Moines, two stores in Des Moines and one store in Fort Dodge.

The main cause of Blockbuster’s bankruptcy is the competition of online services like Netflix and Redbox, although other stores such as Family Video have still been able to do business despite these services.

Family Video has opened up 130 stores since July 2010 in the Midwest and has stores in 19 states.

“It’s actually cheaper to rent here than Netflix or Redbox,” said Mason Wells, employee at Family Video. “It’s approximately 60 cents a day for a new release, whereas for NetFlix and Redbox it is a dollar a day.”

Another reason that Family Video is still able to compete is they get movies in sooner than the online services.

“Five major studios that release DVDs hold movies 28 days until they are released to Netflix,” Wells said.