Great American Recommended as Gallery Liquidator14 May, 2010 By: Erik Gruenwedel
Movie Gallery, owner and operator of Hollywood Video and in-store Game Crazy locations, is seeking expedited approval by a U.S. bankruptcy court to hire Great American LLC to administer going-out-of-business sales at nearly 1,300 stores.
Gallery, which officially announced it was ceasing operations, received an unsolicited bid last week by Woodland Hills, Calif.-based Great American, according to a court filing.
As part of its bid, Great American is guaranteeing Gallery more than $62 million in revenue from the liquidation sales, from which it keeps 3%, in addition to related costs and fees.
The company gets a $1.75 million “break-up” fee should its bid be beaten by a third-party.
Great American is no stranger to entertainment retail, having liquidated going-out-of-business sales for Tower Records and Circuit City, among others.
The court is slated to rule on the Great American bid May 19, with formal objections due May 18.