Movie Gallery is shedding five more of its Hollywood Video stores in the greater Capital Region as it attempts to emerge from bankruptcy.
Movie Gallery, the Dothan, Ala. video rental giant, announced Monday it would close 400 stores, including Hollywood Video stores in Colonie, Troy, Queensbury and Slingerlands and a Movie Gallery in Chatham. Those closures come on top of the 520 stores the company in September targeted for shutdown, including a Hollywood Video store in Niskayuna.
“The decision to close stores is always difficult, but we are confident that we are taking the right steps to emerge from bankruptcy as a stronger company, better positioned for long-term success,” Joe Malugen, chairman, president and CEO of Movie Gallery said in a statement announcing the closures.
When Movie Gallery filed for Chapter 11 reorganization in a U.S. Bankruptcy Court in Richmond, Va., in October, it was the nation’s second largest video rental retailer. Like industry leader Blockbuster, Movie Gallery has suffered at the hand of Internet rivals such as Netflix and weak box office performances.
Executives have not been able to get Movie Gallery back on track since 2005, when they acquired Hollywood Entertainment and its 2,000 Hollywood Video and 700 Game Crazy stores.
The company said the Movie Gallery and Hollywood Video stores included in the latest round of closings are underperforming or unprofitable. Company leaders said Movie Gallery should emerge from Chapter 11 in the second quarter.