Movie Gallery Inc. to close 11 stores in Northeast Ohio
By STAN BULLARD
10:16 am, February 4, 2010
Closing sales are under way at 11 Movie Gallery and Hollywood Video locations in Northeast Ohio following corporate parent Movie Gallery Inc.'s Feb. 2 filing for voluntary Chapter 11 reorganization under the U.S. Bankruptcy Code. A news release about the restructuring on the web site of the company based in Wilsonville, Ore., said it would close 760 unprofitable Movie Gallery, Hollywood Video and Game Crazy stores in the United States. The web site of the DVD and game rental chain said Movie Gallery would keep open five stores in the region and would shut 11. The company has Hollywood Video and Movie Gallery brands in the region, and it is closing and keeping open some of each. Movie Gallery's store locator on its web site indicates which stores it is shutting and which it is retaining. Hollywood Video stores that will close are in Aurora, Brook Park, Fairlawn, Lorain, Mentor, North Ridgeville and University Heights. Movie Gallery stores it will shut are in Chesterland, Medina, Streetsboro and Twinsburg.
The closings come in the face of on-demand movie competition, DVD rentals by mail and $1-per-night Redbox rental kiosks. And they may not end there.
Movie Gallery said it intends to keep open 900 stores that will form the base of its ongoing company, but it may close more of those stores. The company said it has another group of 1,006 stores it may close in the future, depending on whether it can slash rents and other costs.
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