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MOVIE GALLERY SET TO CLOSE REMAINING RETAIL OUTLETS
By: Andy Powell, Staff Writer - 05-04-10 - 9:30 a.m. PDT
WILSONVILLE, Ore. — Hollywood Video chain owner Movie Gallery Inc. told JRL that it plans to close their remaining U.S. stores.
The video-rental chain, which included adult video categories, has faced several waves of money woes in recent years.
The Wilsonville, Ore., company filed for bankruptcy in February and had already commenced plans to close more than half its 2,415 U.S. outlets. The closure of the Movie Gallery's remaining stores likely will take place over the next couple of months or so, according to reports.
At press time it wasn't clear whether it would close its 180 Canadian stores. That issue is has not yet been reached. The second-largest movie-rental chain by outlets behind Blockbuster, which doesn't rent adult videos, failed to get traction after it emerged from bankruptcy in 2008.
Private-investment firms Sopris Capital Advisors and Aspen Advisors had invested in the company at the time, but the chain later filed for bankruptcy again in February. Movie Gallery's financial problems stem from the $600 million in debt it took on acquiring Hollywood Entertainment Corporation in 2005.
The stock price as of Tuesday May 4, 2010 was 0.00 at press time.
Movie Gallery's web site is operational at www.moviegallery.com and doesn't show any signs of closing down nor does it shows that items have been removed from their official web site.