Movie Gallery gets pulled from Nasdaq list

DOTHAN, Ala. Movie Gallery today announced that it has been delisted from the Nasdaq Stock Market. According to the company, Movie Gallery received notice of its delisting from Nasdaq on Oct. 16 because of its filing for protection under Chapter 11 of the U.S. Bankruptcy Code.

Trading in the company's common stock will be suspended at the opening of business on Oct. 25. Movie Gallery said it does not intend to appeal Nasdaq's delisting decision and expects that its common stock will continue to trade on the OTC Bulletin Board or in the "Pink Sheets" following Oct. 25.

The news of Movie Gallery's delisting from the Nasdaq is the latest in a series of troubling events for the video rental chain. Two weeks ago, the company announced the closing of 520 stores, which was later followed by the announcement that it was filing for bankruptcy.

The chain has been in trouble since its $1 billion purchase of Hollywood Video in 2005, a purchase made at a time in-store rentals were starting to decline. In its most recent quarter ended July 1, the chain posted a loss of $310 million and a 12.2% decline in rental revenue.