The company, which includes Hollywood Video and Game Crazy, filed for bankruptcy in February for the second time in roughly two years. As GlobeSt.com previously reported, Movie Gallery filed a reorganization plan with the US Bankruptcy Court in October 2007, when at the time, it operated 4,430 stores.
On February 2, 2010, Movie Gallery filed voluntary petitions for reorganization under Chapter 11 of the US Bankruptcy Code. The action enabled the company to restructure its debt while continuing to operate the business, according to a company release. The filing does not include its Canadian operations, which continue business as normal.
In the company statement, it says that restructuring also 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 says in the statement.
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