Headlines

Movie Gallery to File for Bankruptcy

May close two-thirds of Hollywood Video locations

Published

14 years ago

January 28, 2010

VMSD Staff

Hollywood Video chain owner Movie Gallery Inc (Portland, Ore.) plans to file for Chapter 11 bankruptcy as soon as next week, marking the second time in two years the movie rental company has sought protection from creditors, according to The Wall Street Journal.

While the company follows Blockbuster Inc. as the second-largest film rental company in terms of stores and revenue, it has faced increased competition from mail services like Netflix Inc. and kiosks such as Coinstar Inc.'s Redbox. With the anticipated filing, the company could try to close about 1800 stores, reports The Journal.

Movie Gallery previously filed for bankruptcy in October 2007 and emerged from that in May 2008, with Sopris Capital Advisors LLC and Aspen Advisors LLC serving as principal owners.

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