Movie Gallery Announces 1,000's of Store Closures

Movie Gallery plans to close more than 1,000 stores over the next couple of months. The company, which includes the banners, Hollywood Video and Game Crazy, plans to close the remainder of its 2,415 U.S. outlets, according to The Wall Street Journal over the next couple of months, but will continue to operate its Canadian operations.

In the company statement, the company said restructuring includes the liquidation and closure of a number of Movie Gallery, Hollywood Video and Game Crazy store locations. "We are closing these stores because they are not profitable and because funds from liquidating them can help us moving forward," the company posted in the statement.

The Wilsonville, OR-based company filed a reorganization plan for the first time in October 2007, when it operated 4,430 stores. On February 2, 2010, Movie Gallery filed Chapter 11 for the second time. The action enabled the company to restructure its debt while continuing to operate the business, according to a company release.