Movie Gallery Plans to Close Remaining Stores
The video-rental chain, which included adult video categories, has faced several waves of money woes in recent years. The Wilsonville, Ore., company filed for bankruptcy in February and had already commenced plans to close more than half its 2,415 U.S. outlets.
The closure of the company's remaining stores likely will take place over the next couple of months or so, according to reports. At press time it wasn't clear whether it would close its 180 Canadian stores.
The second-largest movie-rental chain by outlets behind Blockbuster, which doesn't rent adult videos, failed to get traction after it emerged from bankruptcy in 2008. Private-investment firms Sopris Capital Advisors and Aspen Advisors had invested in the company at the time, but the chain later filed for bankruptcy again in February.
Movie Gallery's financial problems stem from the $600 million in debt it took on acquiring Hollywood Entertainment Corp. in 2005.