"This program, together with our previously announced subleasing program, represents our on-going initiative to restructure approximately 70% of the company's real estate portfolio," says Keith A. Cousins, Movie Gallery's executive vice president and chief development officer, in a statement. "We anticipate that these efforts will significantly improve our operating results and enhance shareholder value."

Movie Gallery executives have already stated that they plan to close at least 100 stores this year, on top of 64 that were shut during the company's fourth quarter, which ended Jan. 1. The last round of closures were due to store duplications as a result of the retailer's acquisition last year of Hollywood Entertainment's more than 2,000 units.

The subleasing program has already had "a great deal of interest," Joe Malugen, the company's chairman, president and chief executive officer, during the company's fourth-quarter conference call. "It includes virtually all 1,000-sf to 2,000-sf retailers that you can imagine."

Management has decided that on average it only needs 4,000 sf in Hollywoods, which average 6,600 sf, and 3,000 sf in Movie Gallery units, which average 4,200 sf. Industry observers have speculated that uses such as fast food or convenience stores could take up the space.