More on Hollywood Video closing

According to news reports, Alabama-based Movie Gallery, Inc. is closing about 520 underperforming and unprofitable Hollywood Video and Movie Gallery stores around the country.

In addition to the store on the outskirts of Linglestown, stores in Elizabethtown, Chambersburg and York are being shuttered in central Pennsylvania.

Over the next two months, the stores will be selling off their stock at a discounted price and finally closing their doors.

The company has been burdened with $1.1 billion in debt due to its takeover of Hollywood Video in 2005. The store closures are part of a plan worked out with lenders to remedy loan defaults.

Movie Gallery is the second-largest North American video rental company. It will operate 4,000 stores after the latest closures.

Source Link