AfterDawn: Tech news

Movie Gallery to shut down all remaining U.S stores

Written by Andre Yoskowitz (Google+) @ 02 May 2010 18:04 User comments (14)

Movie Gallery to shut down all remaining U.S stores Movie Gallery, the parent behind the once popular video rental chain Hollywood Video has announced today that they will close all 2415 remaining U.S. stores, liquidating all inventory and the stores over the next few months.
The company is currently in Chapter 11 bankruptcy, for the second time since 2007.

There are 184 Hollywood Video chains that remain in Canada, and it is unclear whether they will be shut down.

The worst part of the news may be that Movie Gallery had 19,000 employees when they filed for bankruptcy, meaning at least 15,000 more people will be laid off soon from their jobs, depending on how many employees still remain since the bankruptcy filing.

The company is the second largest brick-and-mortar rental chain in the U.S. behind Blockbuster (which is struggling as well). Redbox and Netflix continue to strive, without the need for physical store.

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14 user comments

12.5.2010 19:34

Farther and farther, jobs in the service industry are being replaced by computers and machines. Within an economy where one has to work for money, being replaced by a machine/computer is not a good thing. So those who are unable to get those jobs that are NOT in the service industry are going to suffer, and this is how the population is going to be culled like farm animals. They use technology and money to gain power to control us, so they don't have to rely on wars to exterminate the population.

22.5.2010 20:54

oh man 19,000 minimum wage jobs lost, can the economy stand the hit?

This message has been edited since its posting. Latest edit was made on 02 May 2010 @ 20:54

32.5.2010 22:54

I'm no economist, but what happens once there's no more dead-end minimum wage jobs left? I guess the skill-less people either become homeless or go to school to get skills, and then the skilled jobs become the minimum wage jobs. You and I both know that one day they'll be robots working in all factories, and even robots working in places like a McDonalds. Robot driven trucks, all those easy jobs will be gone.

42.5.2010 23:17

Originally posted by VENOM79:
oh man 19,000 minimum wage jobs lost, can the economy stand the hit?
You would rather your tax dollars go to paying their unemployment checks as they sit at home? ANY job loss is bad, especially in this economic climate.

53.5.2010 3:28

Est. 13 days till all the hot deals start popping. It does suck however 19,000 is nothing compared to Vegas where I'm a casino games dealer. Half the town has pretty much been laid off and if there's a job it's part time. 425$ a week for 2 years plan is hard to get off :(

This message has been edited since its posting. Latest edit was made on 03 May 2010 @ 3:33

No time for Leap frog!!!

63.5.2010 16:37

The writing was on the wall for a long, long time. I once worked for Hollywood Video, starting there in 99 on through 2002. The rental industry was booming when VHS was king, however the media mafia got greedy with DVD, but made giant mistakes upon it's delivery, some of which they are trying to correct by now enforcing 30-60 day windows on Redbox and Netflix.

Those windows once existed with VHS, though it was the opposite, where rentals were out first and then the retail tapes would hit your local store. PPV and HBO rounded out the rest of the "calendar" for each movie.

Now DVD's come out for rental and retail on the same date. With the rise in operation costs (and inflation) it was costing $4-5 to rent EACH DVD at a Hollywood Video or similiar store, when at the same time prices were dropping at Wal-Mart and many movies can be had for as little as $3 (older, catalog titles) or $12-15 (new releases.) It pretty much killed the rental industry silently, at a time where Hollywood and Blockbuster were booming and expanding like wildfire.

I do remember, even back in 01 or 02, reading a report about Hollywood's credit being frozen and they could no longer borrow money to build new stores. At that time each new store was built, much like a McDonald's, etc. The initiative switched to them moving into plazas to help cut costs, but they never recovered from that huge amount of debt from years past.

Movie Gallery I would compare to a snowball - it kept growing and growing, adding more and more smaller chains until it became big enough to buy Hollywood, which I could NEVER understand the reasoning behind adding so much debt to your company by buying them out. Movie Gallery was already large enough to be a major competitor and would become the defacto number two player in the rental market if Hollywood closed. They might still be alive and kicking had they just let Hollywood die a natural death in the first place.

73.5.2010 20:13

minimum wage or not to most people a job is a way to pay bills and live life,so it dont really matter how much you make on your job as long it pay for your life style. the nerve and the vanity of some people make me F--king sick.And yes i do make more than minimum wage but that's not the point i work in customer service as a manager but there are people who work under me that dont make alot of money but they are good hard working people.And i feel bad when any of them are laid off due to cut backs.what we need to see in is more of them overpayed wall street asshole fired and run out of town for all the money they stole from us.

84.5.2010 0:03

The lost jobs are unfortunate, but the model is outdated and it is amazing that BB & HV have lasted this long. We can't keep businesses afloat just for the jobs they provide...the feds have tried it over and over without success.

This message has been edited since its posting. Latest edit was made on 04 May 2010 @ 0:03

94.5.2010 0:27

com on really, try paying bills on minimum wage you cant do it, your telling me theres not another crapy paying job out there? why do people always do that make a big fuss about losing a minimum wage job? i've done minimum wage it's a go nowhere job,the company makes millions while you make 350 a week,go sell drugs if you get caught oh well what are they gonna do take away your lambo,bmw or kick you out of your palace

104.5.2010 5:41

some people are just idiots! no one chooses to have a minimum wage job its just what you end up with depending on circumstances. besides one day we'll all be making 20 an hour and that will still be minimum wage. regardless of how much you make its an income that you've based your lifestyle and life around. its crappy but its still a life! do you really think 19,000 people can find a replacement job before there funds run out? and thats if they were smart enough to have some in the first place.
some people just need to stop being so single mind or not state there opinion at all

114.5.2010 15:00

Originally posted by bomber991:
I'm no economist, but what happens once there's no more dead-end minimum wage jobs left? I guess the skill-less people either become homeless or go to school to get skills, and then the skilled jobs become the minimum wage jobs. You and I both know that one day they'll be robots working in all factories, and even robots working in places like a McDonalds. Robot driven trucks, all those easy jobs will be gone.
calling another mans job easy is not a nice thing to do

124.5.2010 23:08

In deed...I would not want to have to work at McDonalds. None the less, I would hardly be surprised to see an all-robotic McDonalds (run by one person and about 10 robotic clowns) in the near future...probably in Japan.

136.5.2010 13:17

Originally posted by KillerBug:
In deed...I would not want to have to work at McDonalds. None the less, I would hardly be surprised to see an all-robotic McDonalds (run by one person and about 10 robotic clowns) in the near future...probably in Japan.
yes, and it will be a tourist attraction. I can see it now, the spotless sterile kitchen with robotic arms working tirelessly. A HUGE long window making the entire process visible.

"Daddy Daddy lets go to McDonald's and watch the Robots make Burgers!!"

Kids (big and small) love watching robots..

Better yet maybe i should patent the Business Idea and Start a new Fast Food Chain "Burger-Tron"...
This message has been edited since its posting. Latest edit was made on 06 May 2010 @ 13:19

147.5.2010 7:54

Originally posted by crunk15:
some people are just idiots! no one chooses to have a minimum wage job its just what you end up with depending on circumstances. besides one day we'll all be making 20 an hour and that will still be minimum wage. regardless of how much you make its an income that you've based your lifestyle and life around. its crappy but its still a life! do you really think 19,000 people can find a replacement job before there funds run out? and thats if they were smart enough to have some in the first place.
some people just need to stop being so single mind or not state there opinion at all
I think the 19,000 will find jobs relatively quickly. It's not like they all work at a factory in the same town and 19,000 people will hit the streets on the same day. they are spread out across the nation and will probably phase out over the course of a couple of months. The best thing that ever happened to me was to lose a low paying job once. I learned the skills to take on the next challenge. There is always a better paying job out there if you are willing to look for it and step outside of your comfort zone.

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