Movie Gallery files for Ch. 11 bankruptcy

Tools

Story Created: Feb 3, 2010 at 1:41 PM PST

Story Updated: Feb 3, 2010 at 1:41 PM PST

By Associated Press

SAN FRANCISCO (AP) — Movie Gallery Inc., owner of the Hollywood Video movie rental chain, has filed for Chapter 11 protection and plans to close 805 stores — about a third of its total.

Its the second trip through bankruptcy court since 2007 for Movie Gallery. The company is struggling with competition from Netflix Inc.'s mail delivery service and Redbox's $1-per-night kiosk rentals.

It has closed more than 2,400 of its stores in the past three years. Court filings Tuesday indicated it has about 2,600 outlets now.

It says the company continued to see "significant" losses in 2009.

Annual revenue fell $546.3 million, or 28 percent, to $1.4 billion.

Weather

Icon
Current Temp 54.0 °
Fair
More Weather

Upload directly from your mobile device.

Learn how

YouNews

This content requires the latest Adobe Flash Player and a browser with JavaScript enabled. Click here for a free download of the latest Adobe Flash Player.

On Demand

Resources and info you need to prepare for the switch to DTV.