Andre Yoskowitz
2 May 2010 18:04
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.