Video City Gets Out of Town18 Nov, 2002 By: Joan Villa
Bakersfield, Calif.-based Video City has sold all 19 locations outside California to Dothan, Ala.-based Movie Gallery, the retailer announced today.
The transaction, terms of which were not disclosed, leaves Video City with 21 stores in the state, where it plans to focus future business development.
The chain emerged from bankruptcy in July 2001 pared down to 41 stores but debt-free, intending to operate solely on cash flow and approximately $1.4 million in trade credit. Longtime Video City employee Timothy Ford stepped up as CEO, replacing company founder and former CEO Robbie Lee.
Ford went on to relocate a handful of stores to avoid big-chain competition and this year began testing new concepts including adding Spanish language product in several locations.