Movie Gallery Closing Remaining U.S. Stores
Movie Gallery will be shutting down their remaining U.S. stores, the announcement comes weeks after the struggling company entered Chapter 11 Bankruptcy for a second time. It is currently unclear whether the bankruptcy will convert to Chapter 7 which is essentially a full on liquidation. When first filling for bankruptcy in February Movie Gallery’s debts were reportedly as high as $600 million USD.
The future of Movie Gallery locations outside of the U.S. is presently unknown. Subsidiaries such as Game Crazy and Hollywood Video which the company purchased in 2005 are also effected by the closures. Some stores could potentially be purchased by competitors such as Blockbuster.
At the height of the company’s popularity Movie Gallery operated over 4,800 stores across the U.S., Canada, and Mexico. As of writing Movie Gallery owns approximately 2,415 stores in the U.S. alone.
[Via Wall Street Journal]