Wilsonville, Ore. – Movie Gallery, the operator of some 1,900 movie
and video game rental stores in the U.S., announced on Wednesday that it has
filed for Ch. 11 bankruptcy protections, and will immediately liquidate and
close 760 of its locations. Oregon-based Movie Gallery "cited the economic
and competitive realities facing its business" in the Ch. 11 filing,
recounting how its closure of several hundred underperforming stores over the
past two years was insufficient.
The company stated that it will continue to
operate during the bankruptcy proceedings, and aims "to emerge from the restructuring
process with a new and sustainable business model centered on a smaller base of
profitable stores."
Following the closures, Movie Gallery will operate 1,111
Movie Gallery, 545 Hollywood Video and 250
Game Crazy locations — although it said it "anticipates closing
additional stores during the Chapter 11 process."
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