print header

# 1 Commercial Real Estate Information Company

  • Find Properties 
  • Market Properties 
  • Analyze Properties 
Products
Commercial Real Estate News

Updated: Movie Gallery Hires Bankruptcy Attorneys; May Close Another 1,000 Stores

Hollywood Video Owner Mulls Bids from Liquidation Firms
February 1, 2010
Update Published 2/1/2010:
The law firm of Sonnenschein Nath & Rosenthal has been hired by Movie Gallery to help the movie rental retailer prepare for a possible bankruptcy filing. Additionally, the firm is reviewing proposals from liquidation firms (among them, Great American Group and Gordon Brothers) that are interested in the 800 stores the retailer will likely shutter, reported Reuters.

John Bicks, a partner at Sonnenshcein, is working on a possible restructuring plan for Movie Gallery -- the lawyer knows the chain well, as he represented Sopris Capital Advisors in its move to become an owner of Movie Gallery during the retailer's 2007 bankruptcy.

Original Story Published 1/22/2010:
Movie Gallery Inc. could close another 1,000 stores, and/or file Chapter 11 (again) in efforts to restructure the company, reported the Wall Street Journal, citing people familiar with matter. However, a bankruptcy or official number of closures has yet to be decided.

Reportedly, Movie Gallery is struggling with $600 million in debt, primarily created from its $800 million acquisition of Hollywood Entertainment Corp. in 2005.

At the movie rental retailer's peak in July 2007, the company operated 4,600 Movie Gallery, Hollywood Video and Game Crazy stores. Since the company emerged from bankruptcy in May 2008 through a go-private deal with Sopris Capital Advisors and Aspen Advisors, the company has closed approximately 1,900 stores, bringing it to its current 2,700-store chain size.

According to CoStar Tenant, the typical Movie Gallery is between 4,000 and 5,000 square feet, while the typical Hollywood Video is between 5,000 and 7,000 square feet.

This article appears in CoStar's Retail News Roundup: January 17-30, 2010
This week in the Retail Roundup, CoStar reports on expansions or new concepts at Bloomingdale's, BabuSan, Target, and Edible Arrangements; closings, cutbacks, bankruptcy, default, receivership or foreclosure news at General Growth, Movie Gallery and Hollywood Video, The Walking Company, Crabtree & Evelyn, Uno Chicago Grill, Daphne's Greek Café, Albertsons, Pearl Arts & Crafts, Sam's Club, Bernie's Audio & Video, and Basha's; acquisition, merger, loan, sale, or IPO activity at AMC Theatres, Swansea Mall, CBL & Associates, and Walgreens; new retail development news in Wisconsin and Pennsylvania; personnel or corporate announcements at Tucker Development, Cole Real Estate, Trammell Crow, Colliers Arnold, Brandon Company, Taco Bell, ICSC and Taubman Centers, Centro Properties Group, Weingarten; sustainability and green building news at Regency Centers; and more.
GET IN TOUCH        Contact CoStar News Team:   News@CoStar.com

 Find us on 

Welcome To CoStar's
Industry-Focused,
Award-Winning News

Winner of three Journalism Awards from the National Association of Real Estate Editors (NAREE)

Award-Winning News