Movie Gallery Goes West11 Jun, 2003 By: Hive News
Dothan, Ala.-based Movie Gallery will be moving westward into California with the acquisition of two Video City stores and a letter of intent to purchase a dozen more locations from the Bakersfield, Calif.-based chain.
If the acquisition is completed, Video City would be left with two stores in Ventura, Calif., according to a statement by Video City. The sale “will be used to satisfy Video City's immediate need for liquidity,” the statement said.
Completion of the sale to Movie Gallery subsidiary M.G. Midwest Inc. will still require a number of contingencies including the successful assignment of real estate leases, approval of Movie Gallery shareholders and other due diligence, the company said.
Executives could not immediately be reached for further comment.