Landlords file motions against Movie Gallery
RELATED ARTICLES
October, 17 2007
Another Look at Netflix's TV Box
What would set-up box actually mean for users, and for Netflix? For one thing, it wouldn't addres...
More
THE DOWN LOW
October, 16 2007
Netflix Set Top Box Rumor Returns
Netflix has filed paperwork to include set-top TV boxes under the Netflix logo, once again fueling (...
More
THE DOWN LOW
October, 10 2007
Netflix Instant On, Instant Hit?
Netflix sees great potential in its relatively new feature that allows subscribers to watch a movie ...
More
THE DOWN LOW
October, 10 2007
Netflix to Showcase Instant On Feature
The company that staked its claim on mailing DVDs to monthly subscribers now wants to showcase it bu...
More
Sesame Street cast and crew celebrated Sesame Workshop/Genius’ Nov. 6 DVD release of Sesame Street: Old School Vol. 2 at an Oct. 25 screening at New York’s Helen Mills Theatre.
Monterey held a Weekend of Unity & Peace Oct. 19-21 to promote its 10 Questions for the Dalai Lama DVD at The Las Virgenes Community Learning Center in Westlake Village, Calif.
David Arquette promoted Fox’s DVD release of The Tripper at Hollywood’s Virgin Megastore on Oct. 23.
» VIEW ALL GALLERIES
» VIEW FEATURED GALLERY
By Cindy Spielvogel -- Video Business, 10/23/2007
OCT. 23 | It’s a prepackaged bankruptcy, but Movie Gallery’s store leases aren’t wrapped up yet.
Shopping center landlord groups have filed motions against the company objecting to the provisions the chain was granted to get out of some of its leases.
In papers filed Oct. 19 with the U.S. Bankruptcy Court in Richmond, Va., some of the landlords asked Judge Douglas Tice to rescind his order allowing the leases on 508 stores to go up for auction Nov. 15 as part of the bankruptcy.
Through their agent, affiliated with Inland Real Estate Group companies, the landlords filed motions for the judge to halt the auctions until provisions can be made to take their needs into consideration, and for the judge to reconsider his order allowing Movie Gallery to conduct store closing sales and procedures related to them.
According to the filing, the landlords are complaining that Movie Gallery has “written themselves a free pass to conduct the closing stores however they see fit.”
The landlords further complain that because Movie Gallery began the store closing sales before it declared bankruptcy, the company shouldn’t be able to ignore any lease violations it committed regarding the store closings before the bankruptcy was filed.
The landlords also are asking for restrictions on Movie Gallery’s advertising to keep the company from posting “going out of business”-type signs, fearing the detrimental impression such actions might convey about the rest of each shopping center.
Final decisions on the motions haven’t yet been made.
Additional landlords filed similar objections on Oct. 24.
On Oct. 25, Movie Gallery's stock was officially delisted by Nasdaq and was trading in the 12¢ to 14¢ range on the "pink sheets" for stocks that don't meet normal listing requirements.
