Gallery Losses Continue4 Jan, 2008 By: Erik Gruenwedel
Bankruptcy protection apparently can't shield Movie Gallery Inc. from market reality as it posted a loss of $80.7 million for the period Oct. 16 (when it filed Chapter 11) to Dec. 2, 2007.
The Dothan, Ala.-based No. 2 DVD rental service, whose stock has been de-listed from NASDAQ, said its Hollywood Video stores lost $53.5 million compared to Gallery locations, which lost $27.2 million, according to a regulatory filing.
Gallery posted revenue of more than $295 million for the period, which included $207.5 million from Hollywood stores and nearly $88 million from Gallery.
Indeed, Gallery, which last month said it plans to exit from bankruptcy as early as the second quarter with a new fiscal plan, posted net income from Nov. 4 to Dec. 2 of more than $36 million.
In addition, Gallery paid $2.2 million in fees to several companies, including New York-based turnaround specialist Alvarez & Marsal.
Finally, Mark Loyd, EVP and chief marketing officer, Todd Page, EVP, secretary and general counsel, and board members John Jump and James Lockwood, sold a combined 100,000 shares of common stock for $1,000, or a penny per share.