Movie Gallery to shut as many as 450 stores
By Danny King -- Video Business,10/29/2009
OCT. 29 | PHYSICAL: Movie Gallery might close as many as 450 of its eponymous and Hollywood Video stores, or about 14% of its total, by the end of the year, as the No. 2 U.S. movie-rental chain struggles against increasing kiosk and by-mail sales by competitors such as Redbox and Netflix.
Movie Gallery, which has about 2,900 units, has closed 250 stores since the beginning of last month and might close another 200 by year end, the company confirmed today. The company has said it would shut 200 of its Game Crazy stores this month.
Movie Gallery has faced growing competition from U.S. movie-rental kiosk leader Redbox and by-mail leader Netflix since emerging from Chapter 11 in May 2008. In the past few weeks, Movie Gallery set up a “real estate hotline” for its landlords that promised a 48-hour response to their inquiry, implying the chain has had trouble keeping up with its rent payments. One landlord told Video Business that the chain was 20 days late paying rent to him.
The closures were reported by Bloomberg News earlier today.
Post a comment Return to article View other article discussions
| Submitted by: | former mga employee 11/2/2009 10:45:25 PM PT |
so according to mr. mityas twitter page, he went to new york for the first game of the world series. no wonder rent is not being paid in stores, and employees are losing their jobs.
| Submitted by: | JOE (rosenthalsam@hotmail.com) 11/1/2009 4:15:42 AM PT |
| Occupation: | COMMERICAL LANDLORD |
ATT:LANDLORDS I'M A LANDLORD AND MG BEAT ME OUT OF 2 MONTHS OF RENT NOT TO MENTION THERE LEASE. BUT THE GOOD NEWS IS THEY TRYED TO MOVE THERE INVENTORY OUT OF THE STORE IN A U-HAUL WITH OUT NOTIFING US AND WE WERE ABLE TO STOP THEM. THE POLICE WERE CALLED AND MG'S CREW WAS INSTRUCTED TO LEAVE THE BUILDING WITH OUT THERE MERCHANDISE. THE DOORS ARE CHAINED SHUT NOW! SO LANDLORDS-AS SOON AS YOU SEND THEM THERE EVICTION NOTICE FOR NON-PAYMENT OF RENT AS WE DID KEEP A EYE OUT.(THEY LIKE TO CLEAN OUT THE STORE IN THE COVER OF DARKNESS.) ALSO, I THINK MGS PLAN IS TO BEATOUT AS MANY LANDLORDS AS POSSIBLE BEFORE THE COMPANY IS SHUT DOWN BY THERE CREDITORS. THESE GUYS ARE RUTHLESS. P.S. THE MANAGER TOLD US THIS STORE WAS IN THE TOP 17% IN SALES IN THE DISTRICT OF 300 STORES! OH YES! STATE SALES TAX COMMISSIONS IN THE STATES THEY OPERATE NEED TO AUDIT THEM AND MAKE SURE THEY ARE RECIEVING ALL SALES TAX THAT ARE DUE.
| Submitted by: | former movie gallery employee 10/31/2009 8:27:57 PM PT |
i can tell you that movie gallery doesn't pay any of it's terminated employees their final check in 72 hours. they pay it on the following payday, so apparently alot of former employees were paid incorrectly, and not in 72 hours.
| Submitted by: | Concerned 10/31/2009 12:03:32 PM PT |
| Location: | Movie Gallery |
| Occupation: | Video |
Employees sue for unpaid wages, get triple damages.
www.wvrecord.com/news/221903-former-employee-sues-movie-gallery-over-final-check
| Submitted by: | former movie gallery mgr 10/30/2009 1:16:44 PM PT |
| Occupation: | now unemployed |
i'm sorry to hear of your experience with the movie gallery manager in your town. i worked as a manager for movie gallery for many many years along with a blockbuster in our town as well, i know we had the same customers and at my store we went out of our way to be respectful of the blockbuster. earlier this year the blockbuster did go out of business, and we still were respectful of the staff and their customers. my store did close this september, with no notice to the staff or customers. all along the district manager said she didn't know a thing. i feel horrible for the customers who were on the power play program, corp had us selling this program to customers until 3pm on the day we closed. i have also heard that even though the store has closed customers were still being charged for the power play program. customers who had items on preorder are also out of luck, being told from corp that there is nothing they can do- these customers are out the money they have already paid. what kind of business does this to it's staff and customers? they don't care about their employees or customers, and i urge the staff that is still there to look actively for other employment because you're going to need it. they will tell you you're store is not closing, your store is in positive numbers, all the while you get product for the following week, and then they close you without any notice, and want you to work like a dog to help box everything up, then mess up the employees last paycheck where they are missing hours for working to close the store. bad bad business.
| Submitted by: | JC (Jchristianson@hotmail.com) 10/30/2009 10:51:13 AM PT |
| Location: | in my indie store |
Geez your store sounds very similar to my experiences with MG, but now they are gone, closed up 3 weeks ago, stiffed the landlord 2 months rent plus utilities.
The manager at that store was spreading nasty rumors around town about my store and me, kept my discs then when the customer went to get them either claimed they were not there that we picked them up or she would scratch them, she was placing flyers on cars in my parking lot, at one point she claimed I was the one closing not them. But now they are gone did the cowardly thing and bolted at midnight.
At one point MG had posted on their website that the main objective was to go into small towns, open up, and put prices in place that would kill the competition.
The customer they did steal are now back with me.
| Submitted by: | JD 10/30/2009 9:32:05 AM PT |
| Location: | Illinois |
| Occupation: | Store Owner |
I own an indepedent video store in direct competition with movie gallery. I have heard our competitor is going out of business by Jan 1st. Good news for us, bad for their employees. That being said, I am not too sympathetic for their corporation as a whole. They had alot of nasty business practices. They falsely reported us to the police and movie studios for bootlegging (it was the Borat dvd, which looks like a burned movie, dummies)! They called our customers and offered them free movie rentals to try to kill our revenue. They kept our movies and games when customers accidentally returned them to their store. I'm glad they are going under so I don't have to worry about what they're going to try next. I feel bad for their landlady, too, who hasn't gotten paid rent half the time the store was open. It's a dirty shame.
| Submitted by: | Wattles 10/29/2009 11:11:46 PM PT |
| Location: | HV |
| Occupation: | CEO |
More store closures. Still can't pay the rent. And
packing everything up in the middle of the night to avoid
being locked out by landlords.
Oh well look on the bright side - Movie Gallery just
released an iphone app that nobody will use.
Didja C the bankruptcy? If you didn't see the one in
2007 don't worry another's coming in a few weeks.
| Submitted by: | eat shorts 10/29/2009 10:54:03 PM PT |
| Location: | tennessee |
| Occupation: | student |
the movie gallery in my area is the only video place in town. so i think it would be stupid to close it---its not in a rent space---it stands alone---like double wide trailer--so there is no rent --just up keep--so i dont think it needs to b closed since it can only be profittable
| Submitted by: | Curious One 10/29/2009 8:04:57 PM PT |
| Location: | USA |
Is Movie Gallery/Hollywood Video really only closing 450 stores? From all the chatter is really seems that matters are worse than indicated. If landlords and utilities are not being paid "if true" than how far behind are they on payments to the studios. They say they have already closed 250 of the 450 stores, is there a list they are willing to list share so all the managers who are left can enjoy the coming holidays. It seems unuasually cruel to shut down almost 20% of thier stores just before the holidays. I wish all the employees the best.
Post a comment Return to article View other article discussions
