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Movie Gallery Consolidates Distribution; 213 Employees Let Go

26 Jan, 2009 By: Erik Gruenwedel

Movie Gallery

Movie Gallery Inc. has consolidated distribution centers in Wilsonville, Ore., and Nashville, Tenn., resulting in layoffs for 213 employees over the next two months.

About 25 remaining distribution workers in Wilsonville will be offered positions within the No. 2 DVD rental service’s organization.

Gallery still employs 389 people at the Wilsonville corporate headquarters. It said combining the two centers was part of ongoing efforts to streamline operations, according to COO and president of retail operations Sherif Mityas.

“The decision to transfer distribution center operations from Wilsonville to Nashville was difficult,” Mityas said in a statement. “We are confident that we are taking the right steps towards creating a stronger company, better positioned for long-term success.”

Gallery reported a net loss of $38.9 million on revenue of $555 million for the period from Jan. 6, 2008, to April 6, 2008 — the last quarterly period before it emerged from Chapter 11 bankruptcy protection May 20, according to a filing earlier this month.

Gallery operates about 3,300 stores under the Movie Gallery, Hollywood Video and Game Crazy brands.

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