Movie Gallery to close five Triangle-area storesTriangle Business Journal - by Wendy Culverwell
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http://triangle.bizjournals.com/triangle/stories/2010/02/01/daily33.htmlMovie Gallery Inc., which operates a dozen Movie Gallery and Hollywood Video stores in the 13-county Triangle area, has entered bankruptcy protection for the second time in less than three years and will close five of its Triangle locations.
According to Movie Gallery’s Web site, the company is closing its Hollywood Video store in Raleigh and four Movie Gallery stores, located in Lillington, Louisburg, Sanford and Siler City. The company will keep open a single Movie Gallery store in each of seven towns: Wendell, Zebulon, Creedmoor, Oxford, Benson, Dunn and Sanford.
Movie Gallery Inc., parent of Hollywood Entertainment, filed for protection from creditors under Chapter 11 in U.S. Bankruptcy Court for Eastern Virginia late Tuesday night. The company emerged from a previous bankruptcy reorganization in 2008.
The Wilsonville, Ore.-based movie rental chain said it will immediately close 760 of its 2,415 stores in a bid to remain viable as overwhelming debt and mounting operating losses hobble its balance sheet.
In its bankruptcy petition, Movie Gallery estimated its assets between $10 million and $50 million, or one-fiftieth of its estimated $500 million to $1 billion in debt.
On its Web site, Movie Gallery said it will immediately reduce its store count to 1,906, with 1,111 operating under the Movie Gallery name, 545 as Hollywood Video locations and 250 as Game Crazy locations. It will close additional stores during the Chapter 11 process.
