DOTHAN, Ala. (AP) - Movie Gallery, Inc. announced plans today to close an additional 400 stores as part of its reorganization plan as it attempts to exit bankruptcy.
The Dothan-based company said it is closing underperforming and unprofitable stores that operate under the Movie Gallery and Hollywood Video names. The company in September announced the closure of 520 stores.
The company sought Chapter 11 bankruptcy protection in October after months of struggling with debt from its 2005 purchase of rival Hollywood Entertainment Corp. for $1 billion.
Movie Gallery is the second-largest video rental company in North America behind Blockbuster Inc. The chain said today it has 3,890 stores throughout the U.S. and Canada operating under the brands Movie Gallery, Hollywood Video and Game Crazy.
(Copyright 2008 by The Associated Press. All Rights Reserved.)