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Article: Gallery files bankruptcy.(Movie Gallery Inc.)
- Article from:
- Video Business
- Article date:
- October 22, 2007
- Author:
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
Major studios make up bulk of large creditors
Movie Gallery last week finally filed a prepackaged Chapter 11 bankruptcy.
Although some held out hope the bankruptcy would not be necessary, it had been expected by many in the industry.
'Although the company has taken numerous steps to reduce its debt and strengthen its balance sheet through closing unprofitable stores, headcount reductions and other means, these actions were not sufficient to offset the significant shift in our business and the cost of our substantial debt obligations,' Movie Gallery chairman, president and CEO Joe Malugen said in making the ...