Movie Gallery Inc., the Wilsonville, Ore.-based operator of the Hollywood Video rental chain, has announced plans to close its remaining 1,900 stores and liquidate its operations.
The company filed the notice Friday last week in the U.S. Bankruptcy Court for the Eastern Dictrict of Virginia in Richmond. This decision follows the company’s defaulting on one of its loans.
Movie Gallery Inc. filed for Chapter 11 bankruptcy in February, for the second time in three years.
Revenue for the company fell last year to $1.4 billion from $2 billion. Analysts suggest that the proliferation of DVD kiosks, over-the-Internet services, and companies offering movies-by-mail is responsible for the company’s decline.
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