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Dothan-Based Video Rental Chain Bankrupt

By Associated Press

Movie Gallery Incorporated, the nation's second largest ideo rental chain, filed for bankruptcy today and indicated it could close additional stores to save money. Dothan-Based Video Rental Chain Bankrupt

Published: Tue, October 16, 2007 - 11:27 am Last Updated: Tue, October 16, 2007 - 12:23 pm

BIRMINGHAM, Ala. (AP) - Video rental giant Movie Gallery
Incorporated filed for bankruptcy today and indicated it could
close additional stores to save money.
But the company says it has no plans to shake up management in
the process.
Movie Gallery is the nation's Number 2 video rental chain and
sought Chapter 11 banktuptcy protection after struggling with debt
from its purchase of Hollywood Entertainment Corp.
It bought that rival for $1 (b) billion in 2005.
The Dothan-based company also has tried to fight off online
competition and announced plans to shutter about 520 unprofitable
stores last month.
Movie Gallery said on its Web site that it would consider
shutting down stores during the reorganization.
The company's stock was mostly unchanged, selling for 24 cents a
share in Nasdaq trading. Shares sold for as much as $5.29 each in
the last year.
Movie Gallery reported losing $14-point-9 (m) million in the
first quarter compared to a profit of $40-point-3 (m) million
during the same period last year.

(Copyright 2007 by The Associated Press. All Rights Reserved.)