Citing Bankruptcy, Movie Gallery Misses Q3 Filing13 Nov, 2007 By: Erik Gruenwedel
Movie Gallery has faced bankruptcy and numerous store closures, including of subsidiary Hollywood Video.
To no one's surprise, bankrupt Movie Gallery Nov. 13 said it would not formally file third quarter financial results for the period ended Sept. 30.
The Dothan, Ala.-based No. 2 video rental company said demands related to its Oct. 16 Chapter 11 filing, including dwindling assets, store closures and ongoing external audits, precluded it from filing a 10-Q with the Securities Exchange Commission without “unreasonable effort or expense.”
For the period, Gallery said it expects revenue of $577.1 million, compared to revenue of $583 million during the same period last year.
Same-store (open at least 12 months) rental revenue fell 8.1% and has fallen 9.5% in the fiscal year. Same-store sales increased 1.3%, due primarily to a 41.6% increase in same-store product revenue.
Gallery did not disclose projected gross profit, operating loss and net loss, although it expects the latter to be greater than during the previous period.
Gallery listed debt of more than $1.4 billion with assets exceeding $890 million in filings with the U.S. Bankruptcy Court in Virginia.