The curtain goes down on video stores
By JEREMIAH O’HAGAN
Staff Reporter
Hollywood Video in Stanwood is one of 760 Movie Gallery closures nationwide. PHOTO BY JEREMIAH O
Hollywood Video by QFC is on its way out.
Movie Gallery, the parent company of Hollywood Video and Game Crazy, voluntarily filed for chapter 11 bankruptcy on Feb. 2, with plans to restructure its U.S. operations in hopes of creating a sustainable business model. Canadian operations were not affected.
The chapter 11 filing jarred 760 stores nationwide into immediate liquidation and closure, and the company expects more stores to close during the restructuring process.
In their filing, Movie Gallery cited “economic and competitive realities facing its business” as the reason for this “appropriate next step.”
The company said they spent the last two years trying to salvage the company, closing several hundred underperforming stores, but “these actions were not sufficient.”
Movie Gallery received court approval to use cash on hand to pay employees and vendors, and continue customer programs, pending a final hearing. Because of this, Movie Gallery will continue to operate the remaining stores throughout the restructuring process.
The stores that remain open will continue their customer programs, including “power play,” “game access passes,” gift
cards and store credits. Customers are expected to return rental items as scheduled and pay any outstanding late fees.
The exodus of Hollywood Video downtown comes on the heels of its location near Village Commons and the theater, which closed last year. It leaves Stanwood without a video rental store.
QFC does have a “red box” video rental kiosk.
On Camano Island, Camano Plaza Video remains the only dedicated rental store, although several convenience stores rent a small selection of movies and DVDs.
