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Movie Gallery Files for Bankruptcy

Well, that didn’t take long. Hot on the heels of our story last week about Movie Gallery’s imminent insolvency comes the news that the Hollywood Video parent filed for bankruptcy this morning. The bankruptcy, Movie Gallery’s second since 2007, will be accompanied by the closure of 805 “poorly performing” locations.
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The company acknowledges Redbox’s role in its decline, according to a statement made in court papers by Movie Gallery’s chief restructuring officer, Steve Moore:

“One of the most significant industry-wide factors affecting the company’s performance since the 2007 bankruptcy cases has been the cannibalization of rentals by DVD dispensing kiosks operated by Redbox which offer low priced rentals and convenience.”

It’s been interesting to see once-mighty chains like Movie Gallery and Blockbuster, who nearly annihilated the mom-and-pop video business in the 90s, become victims of obsolescence and shifting consumer preferences themselves. Where do we go from here, Insiders?
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Can relative upstarts Redbox and Netflix keep themselves relevant in a swiftly changing marketplace, or will we be writing their epitaphs in a few years?

(via the Dallas Observer)

15 Responses to “Movie Gallery Files for Bankruptcy”

  1. Visitor [Join Now]
    James [visitor]

    If I had to guess, I’d say have to say, “epitaphs.”

  2. Visitor [Join Now]
    Joe Schmuck [visitor]

    YOUR STORY !!!!!!!!!!!!!!!!!!!!


    It was all over the news industry wide , well before you did your little copy & paste version.

    • Member [Join Now]
      Shane Smith [shane9]

      Yes, Mr. Schmuck. Our website had a story last week about Movie Gallery’s potential bankruptcy. Nowhere in the piece did we claim it to be exclusive reporting and we actually included several references.

      You felt it was worth twenty exclamation marks and copious caps lock usage to debate the semantics of “our” versus “a”?

  3. Visitor [Join Now]
    NookSurfer [visitor]

    I’m not surprised. i think the last time I went to a store…let alone Hollywood video to rent a movie was at least 6 months ago.

  4. Visitor [Join Now]
    Firstlawofnature [visitor]

    They can only hope to be around as long as Blockbuster was/is. Is it 25 years Blockbuster has been around? All those years of late fees and NCR is still willing to license the brand today

  5. Visitor [Join Now]
    Dan Nations [visitor]

    When your business no longer supports consumers needs and is steadfast about not changing it’s ways this is what happens. If they had knocked down their prices sooner I think they might have stood a shot. I called a local blockbuster again the other day to price their old movie rentals and they said $4.95.

  6. Visitor [Join Now]
    crazy_noodle [visitor]

    I think they will both be around. If most or all brick and mortar stores go away then people without Internet access will need something like Redbox instead of buying movies. People with Internet access will use both.

  7. Visitor [Join Now]
    tuna [visitor]

    Fresno, California (KFSN) — Hollywood Video will close about 750 of its stores, including one in the Valley fresno is the fifth largest city in calif. we have only two left open, but blockbuster still doing good here for now

  8. Visitor [Join Now]
    jmr87 [visitor]

    I believe red box is a good thing to happen but… what about the people that dont have credit or debit cards? I work at a store that has a red box located outside and may people come in to complain that they can not rent a movie.

    • Visitor [Join Now]
      rb [visitor]

      If Redbox doesn’t require a credit or debit card at their kiosks, how else can they be guaranteed to get paid if the customer keeps the dvd? Don’t all the other dvd rental kiosk businesses also require a credit or debit card to rent from their kiosks?

      • Visitor [Join Now]
        Firstlawofnature [visitor]

        How about a free redbox stored value card from coins counted at a coinstar unit.

        • Visitor [Join Now]
          rb [visitor]

          I think Michael had a good idea once where you buy a Redbox rental card that is only activated once you give a legit credit or debit card account number. Say if the card has $10 on it, and you rent 10 dvds but never return them then Redbox could still receive payment due through your credit or debit card for the amount you owe them. Any business, kiosk or otherwise, tries/needs to guarantee a way to get paid for their services. Either way, it still involves a debit or credit card for those who don’t like or want to give out their debit or credit card information for any reason.

  9. Member [Join Now]

    we customers tried to tell them what we wanted but they just would not listen

  10. Visitor [Join Now]
    rb [visitor]

    Today I saw a big STORE CLOSING sign on my last local brick and mortar store–Hollywood Video. There are no Blockbusters or other rental places within like 50 miles of me. Redbox kiosks are everywhere. With the last of the brick and mortar stores closing, I think this is an excellent time for Blockbuster Express kiosks to start popping up and competing with Redbox. Redbox has been a great source for the bargain hunter in me BUT have to admit their selection has really been poor lately. LOL that Redbox has that contest now where the winner wins 365 days, 1 dvd per day, of Redbox rentals. I can barely find one Redbox new release weekly that I want to watch. If Blockbuster Express offers the same low rental price and/or promotions, plus has a better dvd selection, I think BB Express will present some strong competition.