Blockbuster can follow examples of major companies that have survived bankruptcy

Blockbuster, the video rental giant that once was a mainstay of American home entertainment, announced last week it is filing for Chapter 11 bankruptcy. Blockbuster, a largely brick-and-mortar company facing intense competition from online-based video rental outlet Netflix, announced earlier this year that the company would close 10 percent of its stores.

Though Blockbuster has ventured into offering movies online, Netflix has so far outperformed Blockbuster's foray into online business.

Blockbuster's bankruptcy plans represent what have been rough times in corporate America. However, bankruptcy doesn't always spell the end for heavy hitters like Blockbuster. Since 2009, several longstanding corporations have filed for bankruptcy, yet they have managed to revive their brands.

Chrysler faced tough times

Auto manufacturer Chrysler filed for bankruptcy in 2009 after holding billions of dollar in debt. Chrysler received $4 billion in government loans and has used the money to keep the company alive while restructuring its business.

Chrysler continues to produce its popular lines of automobiles, including Dodge Caravan minivans, Dodge Caliber sedans, Dodge Ram trucks and its long-standing Jeep vehicles. Meanwhile, Chrysler has formed an alliance with Italian auto manufacturer Fiat. Chrysler has also carried on its MoPar parts division and is integrating Fiat parts into its extensive inventory.

Auto giant GM was near collapse

General Motors, like Chrysler, was another major American automobile corporation facing bankruptcy in 2009. After a period of declining sales, $50 billion in government money helped save the long-lived automotive icon from complete obliteration.

With the government still owning a majority of GM, the auto maker has managed to keep tens of thousands of jobs within its company and its many suppliers and is revamping its corporate plans with new concepts aimed toward changing demographics. The electric-powered Chevrolet Volt, a new model planned for release next year, is a prime example of how GM is tapping into the green economy and broadening its reach into new markets.

Six Flags avoided shutdowns

Six Flags Entertainment, one of the best-known names in the theme park industry, was yet another major brand which fell on hard times, filing for bankruptcy in 2009.

Six Flags, operating 19 parks, entered bankruptcy with nearly $3 billion in debt. Six Flags reduced its debt by more than half, now down to around $1 billion, and continues to operate theme parks all across North America. While the tourism sector has suffered somewhat from the troubled economy, Six Flags still enjoys brisk business from families choosing to vacation closer to home.

Beloved magazine, Reader's Digest, condensed debt

Reader's Digest, well-known for its condensed magazines seen in virtually every waiting room, office and newsstand across the country, has survived its 2009 bankruptcy filing.

Eliminating 75 percent of its $2 billion in debt, Reader's Digest revamped its board of directors and has been continually expanding into new media markets, including books and videos, and producing the popular food magazine Every Day with Rachel Ray.

Mall company survives

General Growth Properties may not be a household name. But you've probably stepped foot in one or more of its 200 shopping centers in 44 states. A sagging real estate market over the past couple years didn't help the company. GGP filed for bankruptcy in 2009, becoming the largest real estate bankruptcy filing in the United States.

The company is on track to ease out of bankruptcy by the end of 2010, following more than a year of restructuring. Chicago-based GGP continues to operate or hold interest in more than 200 million square feet of mall space comprised of 24,000 stores.