Last Update: March 19 @ 7:09 PM
retail
Hollywood Video in bankruptcy – again
BLOOMBERG NEWS FILE PHOTO / GARY TRAMONTINA
HOLLYWOOD VIDEO STORES are located in Warwick, Cranston, Pawtucket, East Providence, Woonsocket, Coventry, Fall River and Dartmouth.


PROVIDENCE – Movie Gallery Inc., the video-rental chain that owns nine local Hollywood Video stores, has filed for bankruptcy protection for the second time in three years and will close at least one local store.

Wilsonville, Ore.-based Movie Gallery, the second-largest rental chain in North America, said it would close at least 805 stores in the United States, or about one-third of its 2,415 locations, and lay off several thousand of its roughly 19,100 workers, Reuters reported.

Movie Gallery will close its Hollywood Video store on Taunton Avenue in East Providence, according to its Web site. The chain also has locations in Warwick, Cranston, Pawtucket, Woonsocket, Coventry, Fall River and Dartmouth. Their futures remain unclear.

“There will be further store closures, but we cannot speculate on the exact number,” Movie Gallery said in a statement Tuesday. The company posted information about how customers would be affected by the bankruptcy on its Web site.

The company has faced fierce competition in recent years from Netflex Inc. and Coinstar Inc.’s Redbox kiosk vision, as well as market leader Blockbuster Inc., the largest video-rental chain.

Movie Gallery last exited bankruptcy in 2008 after closing 1,000 stores, reducing debt and renegotiating contracts with movie studios, Bloomberg News reported.

The company listed debt of between $500 million and $1 billion and assets of up to $50 million in Chapter 11 documents filed yesterday in U.S. Bankruptcy Court in Virginia, Bloomberg said.

Additional information is available at moviegallery.com.

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