Blockbuster Inc on Thursday said it plans to begin the process of delisting from the New York Stock Exchange, after shareholders rejected a proposed reverse stock split intended to keep its price at acceptable trading levels.

Blockbuster, which faces bankruptcy, has bled market share to mail-service Netflix Inc and DVD kiosk rental chain Redbox, which is owned by Coinstar Inc .

Blockbuster said last week that preliminary results from a shareholder vote showed it had won approval for a reverse stock split. But in a regulatory filing late on Wednesday, the company disclosed that a final count showed it failed to reach the required threshold of votes to approve the measure.

The reverse stock split had been key for the company to avoid being delisted from the NYSE, for letting its price fall below $1 per share over 30 trading days. The NYSE had warned Blockbuster in November 2009 it risked getting bumped.

The company faces more than $900 million in debt, and it has struggled to cover interest payments. Blockbuster last traded at 23 cents Thursday on the NYSE.

The company now intends to begin the process of delisting both its Class A and Class B common stock.

Meanwhile, Blockbuster Chief Executive Jim Keyes is working under an employment contract that expires this week.

(Reporting by Alex Dobuzinskis: Editing by Leslie Gevirtz)