Hedge fund to press Movie Gallery to improve
EmptyNEW YORK -- Hedge fund Schultze Asset Management, the largest shareholder in Movie Gallery Inc., said Tuesday it planned to press the video retailer to take steps to improve value, pushing shares up.
Schultze, which holds about 14.4% of Movie Gallery, said in a regulatory filing that it could propose that the company raise funds from shareholders through a rights offering, in part to pay off bank and bond debt and lower interest expenses.
Movie Gallery shares rose 30 cents, or 8.9%, to $3.66 in early afternoon trading on Nasdaq.
Schultze, which specializes in investing in companies in financial straits, holds about 4.7 million shares in Dothan, Alabama-based Movie Gallery.