By KRWG News
Las Cruces – As part of a bankruptcy filing, Movie Gallery, Inc. is holding a closing sale at its store in Las Cruces, located at 5702 Bataan Memorial East.
It is one of 760 closures, as the company announced that it and all of its subsidiaries, with the exception of its Canadian subsidiary, filed voluntary petitions for Chapter 11 reorganization in the U.S. Bankruptcy Court.
The restructuring will include the immediate liquidation and closure of approximately 760 stores in the U.S.
After these initial store closings, the company will operate 1,906 stores in the U.S., including 1,111 Movie Gallery, 545 Hollywood Video and 250 Game Crazy
locations.
The company anticipates closing additional stores during the Chapter 11 process.
In the Chapter 11 filing, the company cited the economic and competitive realities facing its business.
Over the past two years, Movie Gallery took a number of steps to respond to its business challenges and position the company for future success, including closing several hundred underperforming stores across the country; however, these actions were not sufficient.
After consideration of all available alternatives, the company determined that a Chapter 11 filing was the appropriate next step in its ongoing restructuring.
Movie Gallery's goal is to emerge from the restructuring process with a new and
sustainable business model centered on a smaller base of profitable stores.