The Wall Street Journal is reporting the immediate death of Movie Gallery and its subsidiaries Hollywood Video and Game Crazy. The once #2 rental company will close the balance of its 2,415 stores in the coming few months.
Over the next 4-8 weeks, the stores will go into liquidation mode, selling off all of their assets at firesale prices. This may be a good time to pick up some movies and games at bargain prices. My local Hollywood Video has been having their closing down sale for the past few weeks, but I have not been in to check it out.
Has anyone else been to a local store’s liquidation sale? If not, will you go and see if there are some bargains to be had?
While the closing of stores like these may be inevitable, it is a sad day and makes me think of the many people directly affected by the death of a company. With over 19,000 employees, there are soon to be a lot more people looking for work. Hopefully they can all find jobs soon and keep food on the table for their families.
What does all of this mean for the industry? Will this strengthen Blockbuster enough to keep them around even longer? Will it have a positive effect on Redbox and Netflix? I personally hadn’t rented from a Movie Gallery store for many years, so it will not affect me in any meaningful way.
And finally, if ALL video stores across the country closed at the same time, how would YOU be affected?