Movie Gallery is shedding five more of its stores in the greater Capital Region as it attempts to emerge from bankruptcy.
The Dothan, Ala., video rental giant announced Monday it would close 400 stores, including Hollywood Videos in Colonie, Troy, Queensbury and Slingerlands and a Chatham Movie Gallery. Those closures come on top of the 520 stores the company in September targeted for shutdown, including a Niskayuna Hollywood Video.
“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,” Movie Gallery Chief Executive Officer Joe Malugen said in a Monday statement announcing the closures.
When Movie Gallery in October filed for Chapter 11 reorganization in a U.S. Bankruptcy Court in Richmond, Va., 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. As of Sunday, the retailer had 3,890 stores in the United States and Canada. Prior to its 1995 initial public offering, Movie Gallery had 97 stores.
The Chapter 11 filing prompted the Nasdaq Stock Market to delist Movie Gallery, which is now trading on the Over-the-Counter Bulletin Board or “Pink Sheets.”
The retailer said the Movie Gallery and Hollywood Video stores included in the latest round of closures are underperforming or unprofitable. Company leaders said Movie Gallery should emerge from Chapter 11 in the second quarter.
The Movie Galley closures further thin the ranks of Capital Region video rental stores. Other local industry losses have included independent operations such as Super Video and Deja View Video in Albany.
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