Movie Gallery to close 160 more stores

By Caroline Salls

Pittsburgh, April 3 - Movie Gallery, Inc. plans to close 160 underperforming Movie Gallery and Hollywood Video stores in its third and final round of store closures, according to a company news release.

The company said this latest consolidation of store operations is in addition to the closures previously announced on Feb. 4, 2008 and Sept. 25, 2007.

"While the decision to close stores is never easy, this final consolidation will allow us to further focus our resources on those stores with the strongest operating performance and best prospects for growth after we emerge from bankruptcy," Movie Gallery chairman, president and chief executive officer Joe Malugen said in the release.

"This is another positive step forward in our restructuring to position the company for profitability and long-term success."

Movie Gallery said it expects liquidation sales at affected stores to begin in about one week and to conclude by April 30.

Movie Gallery, a Dothan, Ala.-based video rental company, filed for bankruptcy on Oct. 16 in the U.S. Bankruptcy Court for the Eastern District of Virginia. Its Chapter 11 case number is 07-33849.

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