Lets see how we can sanitize this story to make it more family friendly: Blockbuster, giant video rental mega-corporation that ruthlessly charged equally giant late-fees for decades is slipping quickly into that final goodnight after not being able to compete with Netflix.

Marc Graser at Variety reports:

The Dallas-based company has been closing stores as more consumers switch to online rental services and kiosks. Blockbuster lost $435 million in the fourth quarter.

As a result, Moodys lowered Blockbuster from “Caa1″ to “Caa3,” two notches into junk status.

Move comes as Blockbuster is bringing back late fees. It will charge $1 for up to 10 days for late returns, capping the fees at $10 on $4.99 new releases. It is also limiting the time for those rentals to five days from the previous seven-day range.

Blockbusted.