Andre Yoskowitz
12 Aug 2007 16:54
Movie Gallery, the game and video rental outlet, posted a large loss for the second quarter of 2007 and expressed “substantial doubt” as to whether it can continue operating.
The company said "that it is not in compliance with the terms of its loans, and that if it does not reach an amended agreement with its lenders by Aug. 14 or obtain an extended forbearance period, its lenders could start foreclosure proceedings immediately."
The filing also goes on to say that the company is losing working capital and without the additional capital the company can not continue operating.
Movie Gallery, which is the second largest US rental chain posted a $561 million USD revenue with a net loss of $310 million compared to a much less substantial $25 million USD net loss last year.
Source:
Video Business