Movie Gallery Founder Resigns4 Aug, 2008 By: Erik Gruenwedel
Joe Malugen, founder and former president and CEO of Movie Gallery Inc.
The housecleaning continues.
Joe Malugen, founder and former president and CEO of Movie Gallery Inc., resigned July 28 from the company's board of directors. In addition, S. Page Todd, EVP, secretary, general counsel and chief compliance officer, was dismissed, effective July 30.
No reason for the departures or named replacements was disclosed.
Dothan, Ala.-based Gallery, which emerged from bankruptcy protection in May, has seen a steady change in management following the arrival of C.J. “Gabe” Gabriel.
Jeffrey Stubbs resigned as president of retail operations and Bo Loyd resigned as EVP and chief merchandising officer.
Gallery's stock, which once traded for more than $33 on the Nasdaq, plummeted to less than $2 and was de-listed after it fell behind on debt payments following an ill-advised $1.2 billion acquisition of Hollywood Video.
The chain filed for Chapter 11 protection in fall 2007.
“We appreciate all that Joe and Page have done for this company,” Gabriel said. “As a founder, Joe played an instrumental role in creating Gallery. Similarly, Page has been a key member of the senior management team for the last 14 years. On behalf of the board … I thank Joe and Page for their service and wish them well in their future endeavors.”