Movie Gallery files bankruptcy

New York City Movie Gallery on Tuesday filed for chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Eastern District of Virginia. It is second chapter 11 filing for the company in less than five years. It previously filed on October 2007 in the same court.

Movie Gallery, based in Wilsonville, Ore., operates stores under the Movie Gallery, Hollywood Video and Game Crazy banners. It is the second largest North American home-entertainment specialty retailer with 2,600 stores, 19,082 employees and approximately $1.4 billion in annual revenues.

Movie Gallery emerged from its 2007 previous bankruptcy filing in spring 2008, with private-investment firms Sopris Capital Advisors and Aspen Advisors as its primary owners.

Movie Gallery, similar to category leader Blockbuster, has faced increased competition from streaming and mail-service provider Netflix and Coinstar, operator of Redbox video-rental kiosks.