Andre Yoskowitz
3 Oct 2009 17:44
Struggling movie rental chain Movie Gallery has announced that they will be closing over 200 Game Crazy stores this month, citing six straight months of declining sales.
The Game Crazy stores are located inside the company's Hollywood Video locations, and management says the movie rental stores will not be directly affected.
The closures are significant in any right, but even more so because there are currently only 550 of the chain store.
“The videogame industry this year has been somewhat tough,” noted Arvind Bhatia, analyst with Sterne, Agee & Leach. He also stated that Game Crazy only controls 2 percent of the market so “others, like Gamestop, will pick up market share,” when they close.
Movie Gallery filed for Chapter 11 bankruptcy in 2007.