Two Quad-City area video rental stores will close as part of a Chapter 11 reorganization bankruptcy filing by Movie Gallery Inc.
In its filing, the Wilsonville, Ore.-based movie chain announced that it will close about 760 stores across the nation.
Among the closings will be Hollywood Video in Rock Island and Movie Gallery in Geneseo, Ill.
After these initial store closings, the company will operate 1,906 stores in the U.S., including Movie Gallery, Hollywood Video and Game Crazy locations. The company expects to close additional stores during the Chapter 11 process.
Movie Gallery Inc., the second-largest video and game rental company in North America, cited the economic and competitive realities facing its business. In the past two years, it has closed several hundred underperforming stores across the county to respond to the business challenges.
In a statement, Movie Gallery Inc. said its goal is to emerge from the restructuring with a new business model centered on a smaller base of profitable stores.
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