Movie Gallery to Close 400 More Stores

[dmx10101]

Movie Gallery will close approximately 400 underperforming and unprofitable Movie Gallery and Hollywood Video stores.

This consolidation of store operations is in addition to the closures previously announced on September 25, 2007.

Joe Malugen, Chairman, President and Chief Executive Officer of Movie Gallery, said, "The decision to close stores is always difficult, but we are confident that we are taking the right steps to emerge from bankruptcy as a stronger company, better positioned for long-term success. We have made significant progress in restructuring Movie Gallery and this action will allow us to further focus our resources on those stores with the strongest operating performance and best prospects for future growth."

"We will work with customers at affected stores to transfer their accounts to other nearby Movie Gallery and Hollywood Video locations where possible," Mr. Malugen added. "I would also like to thank our many associates and partners for their dedication to the Company and outstanding customer service. As always, we remain committed to treating all affected employees fairly and providing the necessary assistance to make this transition as smooth as possible."

Movie Gallery once again has retained the Great American Group, an outside professional services firm, to assist it in conducting sales of the inventory at the stores scheduled for closure.

The Company is the second largest North American video rental company with approximately 3,890 stores located in all 50 U.S. states and Canada operating under the brands Movie Gallery, Hollywood Video and Game Crazy. Since Movie Gallery's initial public offering in August 1994, the Company has grown from 97 stores to its present size through acquisitions and new store openings.

[NJxxJon]

Originally posted by dmx10101
Movie Gallery will close approximately 400 underperforming and unprofitable Movie Gallery and Hollywood Video stores.

This consolidation of store operations is in addition to the closures previously announced on September 25, 2007.

Joe Malugen, Chairman, President and Chief Executive Officer of Movie Gallery, said, "The decision to close stores is always difficult, but we are confident that we are taking the right steps to emerge from bankruptcy as a stronger company, better positioned for long-term success. We have made significant progress in restructuring Movie Gallery and this action will allow us to further focus our resources on those stores with the strongest operating performance and best prospects for future growth."

"We will work with customers at affected stores to transfer their accounts to other nearby Movie Gallery and Hollywood Video locations where possible," Mr. Malugen added. "I would also like to thank our many associates and partners for their dedication to the Company and outstanding customer service. As always, we remain committed to treating all affected employees fairly and providing the necessary assistance to make this transition as smooth as possible."

Movie Gallery once again has retained the Great American Group, an outside professional services firm, to assist it in conducting sales of the inventory at the stores scheduled for closure.

The Company is the second largest North American video rental company with approximately 3,890 stores located in all 50 U.S. states and Canada operating under the brands Movie Gallery, Hollywood Video and Game Crazy. Since Movie Gallery's initial public offering in August 1994, the Company has grown from 97 stores to its present size through acquisitions and new store openings.

Blame that on the streaming movies online.........:hurt:

[arnoldziffel]

i will go on record and say that i think video stores will be history within 10 years.  Can anyone remember when you used to have to pay a membership fee for a video store?  My dad paid $99 for a lifetime membership to a video store back in the mid 80's.    I figure within 10 years, they'll probably be history all together.

[beachgal26]

I find that really sad (especially since my husband works pt at one), but I think that Netflix is more the reason why some are failing.  I know that my daughter jumped on-board when it first started and it is alot nicer to have them come right to your home and not to have go and hunt around for them.  However, I do still think that families will use rental stores since it gives the kids a chance to pick out what they want and it is one of the last things that families can do together.

The Hollywood Video around the corner closed a few months ago and the only remaining one in our area will be closed down within the next month.  (Fortunately, that only leaves Blockbuster which is where my husband works on the weekend.)

[captjack]

Don't forget Redbox and their free codes. CD rentals from Redbox is very popular in the Fire Service, down time cheap movies, and easy to return. And if you forget to return it, it's only a dollar more on the debit card. captjack

[NJxxJon]

Originally posted by captjack
Don't forget Redbox and their free codes. CD rentals from Redbox is very popular in the Fire Service, down time cheap movies, and easy to return. And if you forget to return it, it's only a dollar more on the debit card. captjack

Netflix is good as well. So far no big issues BUT WAITING for the movies ...haha

[Kmart4life]

My Movie Gallery rental card, now a piece of hostory!

[Amesguy2000]

Woah

I though The Movie Gallery Was Just A Regional Thing

We Had one here and when it closed That broke my heart Lol

Portland Indiana Was Ours>>>!

[Kmart4life]

Geez I thought they were long gone!