Movie Gallery Emerges from Bankruptcy

Leaner and Meaner

 Movie Gallery, which operates around 3300 video stores in North America, emerged from its Chapter 11 bankruptcy this week, a smaller company with new owners.  It’s completed the closing of over 900 stores (see “Movie Gallery Closing 160 More Stores”), and restructured its ownership.  The old stock classes were washed in the bankruptcy, with new stock being issued to certain classes of unsecured creditors. 

Movie Gallery also closed on a new $100 million credit line as part of its restructuring. 

The brick and mortar video business is under ferocious assault from NetFlix (which announced a new set-top box product this week), and downloading, legal and illegal.