Court OKs Additional Movie Gallery Store Closures

17 Mar, 2010 By: Erik Gruenwedel

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A U.S. Bankruptcy Court has approved the closure of 391 additional stores nationwide by Movie Gallery, including Hollywood Video locations.

Wilsonville, Ore.-based Gallery, which owns Hollywood Video, immediately began shuttering 760 underperforming locations when it filed for Chapter 11 protection for the second time in February.

Gallery owed more than $540 million to lenders, including nearly $45 million to Hollywood studios and distributors, and was behind or in default on numerous loan payments, according to court records.

The additional closures, which were approved March 12, would bring total closures to 48% of Gallery’s 2,400 domestic locations at the time of the filing.

The bankruptcy does not affect Gallery’s Canadian operations.

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