Movie>Q Receives $1 Million Credit Line17 Jan, 2011 By: Erik Gruenwedel
Production company Point.360 said it has secured a $1 million line of credit that it intends to spend on operations, including further rollout of its automated Movie>Q rental/retail chain subsidiary.
Movie>Q opened its first store last April in Westminster, Calif., with subsequent openings at two more Southern California locations in La Mirada and Costa Mesa. Movies and games can be rented for $1 per day and retail from $19.99 with a credit card, with no membership required.
Burban, Calif.-based Movie>Q is headed by Joe Malugen, founder and former CEO of Movie Gallery.
The credit line with Crestmark Bank can be increased to $3 million upon successful examination of Burbank-based Point.360’s financial records, according to a regulatory filing.
Indeed, Point.360 Jan. 14 said it terminated a $5 million credit facility with Bank of America due to its failure to meet a minimum financial covenant tests. It also repaid $352,000 due to GE Capital Corp.
For the first quarter of fiscal 2011, the Point.360 reported a net loss of $2 million, compared to a net loss of $2 million in the same period last year. Operating loss was $2 million in the first quarter of fiscal 2011, compared to a loss of $1.8 million in last year's first quarter.