Report: Movie Gallery to liquidate
Will close all 2,415 U.S. video rental storesNEW YORK -- Video rental firm Movie Gallery plans to shutter all remaining 2,415 U.S. stores in the coming months after filing for bankruptcy for the second time in a little more than two years in February, the Wall Street Journal reported Monday.
The future of the company's 184 Canadian stores, which weren't part of the February bankruptcy filing, wasn't immediately clear.
The Wilsonville, Ore.-based company's financial challenges started when it acquired Hollywood Entertainment, operator of the Hollywood Video stores, in 2005 and took on more debt.
Movie Gallery had been planning to restructure under Chapter 11 of the U.S. bankruptcy code rather than liquidating under Chapter 7. It was looking to close underperforming stores and sell some others. Blockbuster was at some point believed to be considering the acquisition of some better-performing stores, but a deal was never reached.