Gallery Seeks $1M for New Store Closures22 Jan, 2008 By: Erik Gruenwedel
Bankrupt Movie Gallery Inc. has requested authorization for funds of about $1 million to compensate employees and managers in a new round of store closures.
Gallery, which filed for Chapter 11 bankruptcy protection last October, shuttered about 520 locations prior to and following the filing.
The motion, filed Jan. 18 with U.S. Bankruptcy Court of Virginia in Richmond, is based on an undisclosed number of additional (Phase II) closures of underperforming stores.
Gallery claimed liquidation and closure “performance bonuses” were not likely to exceed $1,200 per store based on going-out-of-business sales during Phase I that lasted from three to seven weeks.
Affected hourly staffers would be entitled to no more than $1 per hour in additional compensation, with store managers capped at $100 per week; and district managers eligible for no more than $2,000 in bonus pay.
Gallery estimated severance payments for individual district managers would not exceed $5,000 to $10,000.
As of Dec. 2, 2007, Gallery employed 6,800 full-time and 31,600 part-time employees at more than 3,600 locations.