RICHMOND, Va. (AP) — The owner of struggling movie rental chain Hollywood Video is planning to close its remaining stores and liquidate its assets.
Movie Gallery Inc. filed a notice with the bankruptcy court in Virginia late last week that it will terminate its business operations after defaulting on a loan from one of its creditors.
An agreement filed with the court says the move to close more than than 1,900 remaining stores is in the “best interests” of the company and its creditors. The agreement does not specify a time line. It must be approved by a bankruptcy judge.
The company, based in Oregon, filed for Chapter 11 bankruptcy in February. It had faced competitive pressure from movies-by-mail service Netflix, DVD kiosk company Redbox and delivery of movies and TV shows over the Internet.
