Movie Gallery bankruptcy will close video stores

Pamplin Media Group, Feb 3, 2010, Updated Feb 3, 2010 (4 Reader comments)

Tribune File Photo

Game Crazy, which is part of Movie Gallery Inc., will close stores across the nation as part of the company’s bankruptcy filing Wednesday.

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Movie Gallery Inc., the Wilsonville company that owns Oregon’s Hollywood Video, said Wednesday, Feb. 3, that it had voluntarily filed for Chapter 11 reorganization in the Richmond, Va., U.S. Bankruptcy Court.

The decision means the company will close nearly 760 stores across the country. After the closings, the company will operate 1,906 U.S. stores, including 1,111 Movie Gallery, 545 Hollywood Video and 250 Game Crazy locations.

During the past two years, Movie Gallery has taken steps to respond to competition from such DVD rental services such as Red Box and Netflix, primarily by closing several hundred underperforming stores. The actions were not sufficient, company officials said, and it decided to reorganize through bankruptcy.

Movie Gallery is the second largest North American video and game rental company. It purchased Hollywood Video in 2005.

What does all this mean? Click here to read the company’s FAQs on its bankruptcy.

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Reader comments

Re: Movie Gallery bankruptcy will close video stores

Leave Gresham alone please? Need to get some ps3s from gamecrazy! That includes games, God of war 3 and dantes inferno and oh so much more....just hang in there for a few more months!

"Anonymous"

(email verified)

Fri, Feb 05, 2010 at 12:37 AM

Re: Movie Gallery bankruptcy will close video stores

So glad that Dear Leader's economic policies are going so well. Perhaps we need to raise the deficit another trillion so as to bail out the video industry. Why not raise it a quadrillion? Why have a deficit ceiling at all? Just let Dear Leader print more paper, and that'll fix everything. Who knew that governing could be so easy?

"Jane"

(email verified)

Fri, Feb 05, 2010 at 10:57 AM

Re: Movie Gallery bankruptcy will close video stores

the just unemployed would like to thank all of you who voted yes for a retro-active tax on their employer the other week.

"Paul H"

(email verified)

Sun, Feb 07, 2010 at 10:58 PM

Re: Movie Gallery bankruptcy will close video stores

Dear "Jane"-

Just a few facts for you to consider:

1) Hollywood Video/Movie Gallery's troubles date back at least 5 years. They've been "circling the drain" for some time, due to a variety of business decisions(too much debt, too many unprofitable locations, etc.). The policies of the Obama administration have had little effect on this situation. In fact:

2) Most of our deficit has been created by Republican policies of the past 30 years. Starting with Ronald Reagan, cutting taxes on the wealthy while accelerating spending has been the norm. Most recently, George W. Bush took this idea to the ultimate extreme, becoming the only national leader in world history to cut taxes while in a time of war. What these leaders have created is what President Obama has inherited.

3) The only people to refer to our President as "Dear Leader" or "Our Saviour" have been the lunatic fringe of the opposition party. No liberal or Democrat or progressive has thought of Mr. Obama as anything but the most reasonable of our given alternatives standing for national office.

The question to ask yourself is: When did I ever object to the policies of the past administration? These are the realities that our current President must deal with. I know you must only wish him, and our nation, only the best, right?