Movie Gallery Begins Canadian Liquidation14 Jun, 2010 By: Erik Gruenwedel
Shuttered Movie Gallery has begun liquidating 131 stores in Canada, including its VHQ subsidiary.
Toronto-based Schottenstein Bernstein Corporation, a unit of SB Capital Group, is heading the liquidation of about $33 million in inventory, which began June 12, along with Tiger Capital Group and Hudson Capital Partners.
Wilsonville, Ore.-based Gallery and subsidiary Hollywood Video ceased operations last month after filing for bankruptcy a second time in two years. The shutdown at the time left Gallery’s Canadians stores in limbo, as they were not part of the bankruptcy.
“The at-home video rental market has become increasingly more challenging with the rise of strong competition from cable providers, Internet, kiosk operators and subscription-based mail delivery services,” said David Peress, president of Hudson Capital.
Los Angeles-based Great American is handling ongoing liquidation of Gallery/Hollywood Video stores in the United States.