Published on Thu, Jan 28, 2010 at 08:10 | Source : Reuters
Updated at Thu, Jan 28, 2010 at 11:26
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Movie Gallery preparing to file bankruptcy
Rental company Movie Gallery Inc plans to file for Chapter 11 bankruptcy as soon as next week, marking the second time in two years the owner of Hollywood Video stores has sought protection from creditors, the Wall Street Journal reported on Wednesday.
Rental company Movie Gallery Inc plans to file for Chapter 11 bankruptcy as soon as next week, marking the second time in two years the owner of Hollywood Video stores has sought protection from creditors, the Wall Street Journal reported on Wednesday.
Movie Gallery did not respond to repeated calls and emails for comment.
The debt-burdened company, based in Oregon, has faced harsh competition from upstart mail services like Netflix Inc and kiosks such as Coinstar Inc's Redbox.
But it remained the No 2 US film rental company in terms of the number of stores and revenue, behind Blockbuster Inc.
The Wall Street Journal cited people familiar with the matter as saying Movie Gallery could seek Chapter 11 protection from creditors as soon as Tuesday, and that it could try to close about two-thirds of its outlets, or 1,800 stores.
Movie Gallery filed for bankruptcy in October 2007 and emerged from that in May 2008.
