Movie Gallery to close underperforming stores

DOTHAN, Ala. Movie Gallery Inc. today announced that it plans to close approximately 520 underperforming and unprofitable Movie Gallery and Hollywood Video stores. According to the company, the closings are part of its plan to conserve cash and reduce the company's cost structure to address the financial and industry challenges it has been experiencing.

Joe Malugen, chairman, president and ceo of Movie Gallery, said, "Closing these stores was a difficult, but necessary decision to help protect the future of this company. These stores are being closed after evaluating a number of factors, including store profits and the terms of the leases at each location. This action will allow us to focus our resources on the approximate 4,000 stores that have a stronger operating performance and prospects for future growth."