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Article: Movie Gallery not a pretty picture.
- Article from:
- Video Business
- Article date:
- July 9, 2007
CopyrightCOPYRIGHT 2007 Reed Business Information, Inc. (US). This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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By Cindy Spielvogel
Chain considering sale after loan default
Movie Gallery is considering the sale of all or part of the company following softer-than-expected second-quarter revenue, which caused the company to default on its senior credit facility.
Movie Gallery said it will consider divesting assets, recapitalization, alliance with strategic partners and a sale or merger. It also plans to accelerate store closings and realign its cost structure to better reflect its reduced size.
Analysts predicted last week that the rental chain may have no recourse, however, but to file for bankruptcy protection.
Michael Pachter, ...