Hollywood Video to shutter all stores

Wilsonville, Ore. Hollywood Video parent Movie Gallery said over the weekend it will close all remaining U.S. stores.

The movie-rental chain of 2,415 U.S. outlets had already begun shuttering stores after its bankruptcy filing last February -- its second filing in two years.

The closure of the company's remaining stores is expected to take place over the next couple of months, according to a report by the Wall Street Journal.

The future of the 184 Canadian outlets remains in the balance, as those stores were not a part of the February bankruptcy filing.

All U.S. employees were notified of the chain’s demise last Friday.

Movie Gallery's troubles trace back to debt it took on during the acquisition of Hollywood Entertainment Corp. in 2005. It filed for bankruptcy in February with a debt load of about $600 million.

Some of Movie Gallery's stores slated for closure could be snatched up by strategic operators, according to the WSJ report. Blockbuster had weighed acquiring some better-performing Movie Gallery stores, but a deal never gained momentum, said the report.