Friday, February 08, 2008


More troubling news, this time a video rental franchise teetering on the brink of insolvency. Video stores were great places to go and immerse yourself in our once-vibrant movie culture. With that culture on the ropes, it's no surprise to see those stores begin to evaporate, joining independent bookstores and record stores. It makes this old bastard a bit weepy.


Another 400 Video Stores to Close Joining Previous 520

Movie Gallery has announced that it will close another 400 stores from its Hollywood Video and Movie Gallery chains, which join the 520 it had previously marked for closings (see "Movie Gallery Shutters 520 Stores"). That will bring the closings to roughly 20% of the troubled chain, which filed Chapter 11 last year (see "Movie Gallery Files Chapter 11").

On the positive side, the company appears poised to emerge from Chapter 11 this year. The company announced late last month that all of its key creditor groups had signed off on its reorganization plan, clearing the way to move forward.

Movie Gallery will emerge from bankruptcy with less debt and out of its leases on money-losing stores, perhaps allowing it to compete more effectively in a consolidating industry, with Wal-Mart, Netflix, and downloads all threatening its business model.


  1. Hi,

    I feel you on this one. I was a manager for a local franchise call Video Hut in Fayetteville NC. in 2006. They were owned by MBI ( Movie Brands Inc.) partnered with Blockbuster. MBI was disolved and I effectively lost my job. I tried to go over to Movie gallery and I notice similar patterns there too. The manager that interviewed me mentioned some stores were being closed. I knew, back then, it was only a matter of time.

  2. I love Amazon but havent tried Netflix. There's something vital about going to the store and picking out a movie. Of course that has ended in tears so often I don't blame people for looking elsewhere.

  3. you know i had to do it :-)

    go to the Library a get FREE DVDs, I am watching HBO's Carnivale, highly recommended!!!

    aka Synchromystic Librarian

  4. Let's all fight to keep the libraries free and open...

    And yes, Carnivale is AWESOME.