Area video store affected by closure For those people who enjoy renting movies and games from their local favorite video store every weekend, they will have one less place to rent from in the coming months.
Movie Gallery, located on North Barron Street in Eaton, is scheduled to close within a couple of months as part of the company's reorganization plan, the company announced last week.
Movie Gallery, Inc. announced Wednesday, Feb. 3, that it and all of its subsidiaries, with the exception of its Canadian subsidiary, filed voluntary petitions for Chapter 11 reorganization in the U.S. Bankruptcy Court for the Eastern District of Virginia, Richmond Division, to address the company's capital structure and reorganize its business operations.
The restructuring will include the immediate liquidation and closure of approximately 760 stores in the U.S. Store locator tools on the Movie Gallery, Hollywood Video and Game Crazy websites can be used to confirm the status of individual stores.
The store located in Eaton is among those scheduled to be closed. Store employees said they will continue to rent videos and games until the end of February and will be selling merchandise until the end of March.
After these initial store closings, the company will operate 1,906 stores in the U.S., including 1,111 Movie Gallery, 545 Hollywood Video and 250 Game Crazy locations. The company anticipates closing additional stores during the Chapter 11 process, according to a release issued by the company last week.
In the Chapter 11 filing, the company cited the economic and competitive realities facing its business. Over the past two years, Movie Gallery took a number of steps to respond to its business challenges and position the company for future success, including closing several hundred under-performing stores across the country; however, these actions were not sufficient.
According to the release, after consideration of all available alternatives, the company determined a Chapter 11 filing was the appropriate next step in its ongoing restructuring. Movie Gallery's goal is to emerge from the restructuring process with a new and sustainable business model centered on a smaller base of profitable stores.
Movie Gallery will continue to operate during the Chapter 11 process and will maintain its focus on providing ongoing value and service to millions of customers across North America.
Movie Gallery and Hollywood Video
customer information
related to store closures
As a valued customer, we want to provide you with information on how your relationship with us is affected by a store closure. We invite you to visit other remaining stores in your area. Use our store locator tool to find alternate store locations.
PowerPlay Members (Movie Gallery, Hollywood Video)
•As of Tuesday, Feb. 2, in stores that are being closed, the PowerPlay subscriptions of customers will not be renewed. This means customers will have no new subscription charges after that date.
•Existing points will remain active as long as the store offers rentals.
•Credits remaining after that may be transferred to another store. Customers should ask their store manager for details or call Customer Relations at 1â877â244â6684.
Diamond Level Members (Movie Gallery, Hollywood Video)
•As of Tuesday, Feb. 2, in stores that are being closed, the Diamond Level memberships of customers will not be renewed. This means customers will have no new charges after that date.
•Customers can continue to use Diamond Level benefits as long as the store offers rentals or until those benefits expire, whichever comes first.
Gift cards (Movie Gallery, Hollywood Video)
•Gift cards will continue to be honored. We encourage you to use your gift cards at one of our other stores in the area. If that is not practical, contact Customer Relations at 1â877â244â6684.
Service Contracts (Movie Gallery, Hollywood Video)
•For customers with service contracts on gaming consoles purchased in our stores, we will honor those service contracts at our other stores in the area. If that is not practical, we will coordinate the repair or replacement by mail. Call Customer Relations to make arrangements at 1â877â244â6684.
Outstanding Rental Items and Late Fees (Movie Gallery, Hollywood Video)
•We'd appreciate it if you would return your items to one of our other stores in the area in a reasonable time frame. If that's not practical, we will provide a prepaid shipping envelope to return items. Call Customer Relations to make arrangements at 1â877â244â6684.
•Customers will be expected to pay any outstanding late fees.
Store Credits and Deposits for PreâOrdered Items (Movie Gallery, Hollywood Video)
•Stores will refund customer deposits, as preâorders will not be fulfilled.
Game Access Pass (Select Hollywood Video locations)
•As of Tuesday, Feb. 2, in stores that are being closed, the Game Access Passes of customers will not be renewed. This means customers will have no new charges after that date.
•Customers can continue to use their passes as long as the store offers rentals or until the passes expire, whichever comes first.
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