Video rental firm Movie Gallery said Tuesday that it will close about 520 underperforming Movie Gallery and Hollywood Video stores to reduce costs and preserve cash. The company did not release how many employees will be laid off. The move will allow the company to focus its attention on the roughly 4,000 surviving stores, CEO Joe Malugen said. Shares rose 14% to 58 cents, making Movie Gallery Monday's leading gainer on The Hollywood Reporter Showbiz 50 stock index.
Spain's biggest exhibitor said Tuesday that it has filed for the country's equivalent of Chapter 11, citing difficulties in meeting upcoming bank payments. Abaco, which owns 42 multiplexes in Spain with 450 screens and 1,200 employees, requested a suspension of payments to creditors last week. A spokesman blamed weak business trends on plummeting ticket sales, rampant piracy, shorter theater windows and growing free-time alternatives.
Shares of online advertising company ValueClick jumped for a second day Tuesday, with analysts citing speculation that the company could be acquired by the likes of AOL. ValueClick shares rose 13% to $24.85 after climbing 7.4% on Monday. The company is one of the few publicly traded companies in its sector that hasn't been gobbled up by a major technology firm.
Online advertising technology firm NebuAd said Tuesday that it has closed a second round of funding, bringing the total investment in the company to more than $30 million. NebuAd's technology anonymously observes consumer Internet activity to help advertisers target users.