Digest: Movie Gallery safe; Hasbro mixed
EmptyMovie Gallery Inc. said Monday in a regulatory filing that lenders have agreed, with conditions, not to force it into bankruptcy for the next few weeks as it tries to either sell itself or restructure. The video rental company recently said it was in violation of certain terms of its credit agreement. Monday's news pushed its stock up 5.4% to $0.59.
Toymaker Hasbro Inc. reported strong second-quarter revenue thanks to "Transformers" and "Spider-Man" products, but its profit declined on charges. Hasbro shares fell 5.4% on Monday to $30.80. The company posted a profit of $4.8 million, down from the $27.1 million recorded in a year ago. Revenue rose from $527.8 million to $691.4 million. In May, Hasbro paid $200 million to buy back all warrants for its common stock held by Lucasfilm Ltd. and Lucas Licensing, leading to a charge of $36.5 million, the firm said. Hasbro also took a charge of $10.4 million for a product recall.