Rental Trouble: Movie Gallery (Hollywood Video/Game Crazy) Shuts Down; Youtube Streaming Store Tanks
By Russ Fischer/May 4, 2010 9:14 am EST
I was told about Movie Gallery closing the other night by a friend who manages a store, but The Wrap has all the necessary details. The chain, which owns Game Crazy and Hollywood Video, will close 2,415 stores in the US. Another 180 stores are operated by the chain in Canada, but we don’t yet know if those are also closing. Over 15,000 jobs will be lost as a result of the cuts.
This is in the wake of a second bankruptcy filing by the company. An unmanageable debt load came about in part by the 2005 purchase of Hollywood Video. The company has been closing stores for the past couple years as Netflix and Redbox have eaten market share. This leaves Blockbuster as the last man standing as far as national dedicated rental chains go. It’s not yet the end of an era, but for anyone who grew up browsing VHS tapes in mom and pop rental stores, it might seem like it. Sure feels that way to me, though as I’ve moved almost all my consumption of rental media to Netflix and online streaming, I represent part of the change.
