Let’s give poor Blockbuster a little break and turn our attention to another failing rental chain, shall we? Movie Gallery, which recently filed for bankruptcy for the second time and has closed nearly half of its locations, will be paying $7.8 million in pre-petition claims to several major studios and a distributor.
According to Home Media Magazine, “the payments include partial revenue-sharing amounts due to Paramount Home Entertainment, Sony Pictures Home Entertainment, Universal Studios Home Entertainment, 20th Century Fox Home Entertainment and distributor VPD”.
The payments were authorized by a Richmond, Virginia court to help ensure continued shipments of titles to remaining Movie Gallery and Hollywood Video (owned by MG) stores. In total, the company is carrying more than half a billion dollars in debt, with $45 million of that owed to studios and distributors.
Both of the Hollywood Video locations near my home have recently closed and sit darkened and empty. How is it in your neck of the woods, Insiders? Any Movie Gallery or Hollywood Video stores still operating? Should we start a poll on this site as to which chain will go belly-up first, Blockbuster or Movie Gallery?
(via Home Media Magazine)