Emporia’s Movie Gallery, 1312 Industrial Road, will soon close as part of a nationwide restructuring move by its parent company.
Early this month, Movie Gallery Inc. filed for Chapter 11 reorganization. The company announced on Feb. 3 that it and all subsidiaries, with the exception of its Canadian operations, filed voluntary petitions for Chapter 11 reorganization, according to a press release put out by the company.
“The restructuring will include the immediate liquidation and closure of approximately 760 stores in the U.S.,” the press release stated.
The closures affect Movie Gallery, Hollywood Video and Game Crazy stores, which are owned and operated by Movie Gallery Inc.
Locally, the Movie Gallery store is selling all of its inventory and fixtures. No final date has been set for closing.
“After these initial store closings, the company will operate 1,906 stores in the U.S. including 1,111 Movie Gallery, 545 Hollywood Video and 250 Game Crazy locations,” the press release stated. “The company anticipates closing additional stores during the Chapter 11 process.”
Movie Gallery Inc., in its Chapter 11 filling, cited economic and competitive reasons for restructuring.
“Over the past two years, Movie Gallery took a number of steps to respond to its business challenges and position the company for future success, including closing several hundred underperforming stores across the country; however, these actions were not sufficient,” the company stated in a press release. “After consideration of all available alternatives, the company determined that Chapter 11 filing was the appropriate next step in its ongoing restructuring. Movie Gallery’s goal is to emerge from the restructuring process with a new and sustainable business model centered on a smaller base of profitable stores.”
More information on the filings is available at www.moviegallery.com/restructure or www.hollywoodvideo.com/restructure.
madpoet (anonymous) says...
And another one bites the dust...
February 17, 2010 at 3:20 p.m. ( permalink | suggest removal )
goodoleboy (anonymous) says...
This is really to be expected at this point regardless of the economy. The business model behind this industry has changed and brick and mortar stores are not a part of it. I think that in the next 5-10 years almost all movie and game rental business will be done via mail service or over the net.
February 17, 2010 at 3:28 p.m. ( permalink | suggest removal )
railroadhorn (anonymous) says...
Yes goodoleboy you are correct but it still means a store manager and a few store clerks will be out of jobs. And there's inconveniece involved if you were physically closer to that store than say Blockbuster or Family Video. I just wonder if there are other new businesses which can come into Emporia and make a profit, or if there will be more going out of business? Seems like one or two are closing nearly every month, and how many more are barely making it?
February 17, 2010 at 4:26 p.m. ( permalink | suggest removal )
goodoleboy (anonymous) says...
My point was that this was inevitable, nothing more. The on demand and delvery rental business is crushing all the major players. Yes it is not a good thing that people are out of work, but this in one time that chalking it up to bad economy is not applicable.
February 17, 2010 at 4:50 p.m. ( permalink | suggest removal )
mslater (Matt Slater) says...
I agree with Goodoleboy, and I think in 5-10 years, you probably won't see any brick and mortar music or video stores. It will all be online or mail-order, although I doubt if that even holds up. Even now you can get streaming movies to your laptop, PC, or through your X-box, PS3, Wii, heck, even some DVD players offer streaming Netflix.
February 17, 2010 at 5:14 p.m. ( permalink | suggest removal )
emporian (anonymous) says...
Or you can go 2 blocks to walgreens and rent out of the redbox. We do that all the time. Only a dollar too if you return it within 24 hrs. Rented a movie today.
February 17, 2010 at 5:46 p.m. ( permalink | suggest removal )
Pinkpintopony (anonymous) says...
Screw the Red Box! I FINALLY was able to return my movies last night ( 2 days late) because the Red Box was "full". The one at Walgreens AND the one at Walmart. After 35 minutes on hold waiting to speak to an actual person about it...I was told I wouldn't be charged when I was able to return them, but I was charged anyway.
So from now on I will only rent movies at hastings..oops, movie gallery..oops, nevermind.
February 17, 2010 at 6:51 p.m. ( permalink | suggest removal )
biscuitboy (anonymous) says...
I was involved with the opening of Your Hollywood Connection..(remember it)...when it first opened here. It was a good business for awhile. But even clear back then an astute observer could start to see the handwriting on the wall.
What surprises me however is the number of places that seem to open stores in Emporia just a short time before the company goes belly up. What is the thinking behind big expansion projects right before you collapse.
February 17, 2010 at 7:03 p.m. ( permalink | suggest removal )
eucharistandcannabis (anonymous) says...
itunes.
February 17, 2010 at 7:21 p.m. ( permalink | suggest removal )
seriouslyfolks (anonymous) says...
Looneytoons
February 17, 2010 at 9:07 p.m. ( permalink | suggest removal )
barefootin (anonymous) says...
ineedpopcorn.com clicker.com
February 17, 2010 at 9:47 p.m. ( permalink | suggest removal )