Movie Gallery, Inc. (Nasdaq: MOVI) today announced that it plans to close approximately 520 underperforming and unprofitable Movie Gallery and Hollywood Video stores. As previously announced, the Company has been accelerating its efforts to conserve cash and reduce the Company's cost structure to address the financial and industry challenges it has been experiencing.
Joe Malugen, Chairman, President and Chief Executive Officer of Movie Gallery, said, "Closing these stores was a difficult, but necessary decision to help protect the future of this Company. These stores are being closed after evaluating a number of factors, including store profits and the terms of the leases at each location. This action will allow us to focus our resources on the approximate 4,000 stores that have a stronger operating performance and prospects for future growth.
We thank our many associates and partners who have remained loyal to us over the years," continued Malugen. "Where possible we will work with the customers at these locations to transfer their accounts to other nearby Movie Gallery and Hollywood Video locations. The talented associates and partners in the stores that will be closing have been notified. As always, we remain committed to treating all affected employees fairly and providing the necessary assistance to make this transition as smooth as possible"
Movie Gallery has retained an outside professional services firm, the Great American Group, to assist it in conducting sales of the inventory at the closing stores.
All items in store will be drastically reduced starting Thursday, September 27, 2007. Some stores may be closed on Wednesday to prepare for the liquidation.
There is no official list of what stores are closing, if you have one near you, go by and see. YMMV - BM only.
Movie Gallery
Hollywood Video
Press Release
Joe Malugen, Chairman, President and Chief Executive Officer of Movie Gallery, said, "Closing these stores was a difficult, but necessary decision to help protect the future of this Company. These stores are being closed after evaluating a number of factors, including store profits and the terms of the leases at each location. This action will allow us to focus our resources on the approximate 4,000 stores that have a stronger operating performance and prospects for future growth.
We thank our many associates and partners who have remained loyal to us over the years," continued Malugen. "Where possible we will work with the customers at these locations to transfer their accounts to other nearby Movie Gallery and Hollywood Video locations. The talented associates and partners in the stores that will be closing have been notified. As always, we remain committed to treating all affected employees fairly and providing the necessary assistance to make this transition as smooth as possible"
Movie Gallery has retained an outside professional services firm, the Great American Group, to assist it in conducting sales of the inventory at the closing stores.
All items in store will be drastically reduced starting Thursday, September 27, 2007. Some stores may be closed on Wednesday to prepare for the liquidation.
There is no official list of what stores are closing, if you have one near you, go by and see. YMMV - BM only.
Movie Gallery
Hollywood Video
Press Release
Facebook
Twitter