Final credits rolling for Movie Gallery as bankruptcy court OKs plan to close all stores

Final credits rolling for Movie Gallery

RICHMOND, Va. — Final credits are rolling for the nation’s second-largest movie rental chain.

A federal bankruptcy judge in Richmond on Wednesday approved Movie Gallery’s plan to close its 1,050 remaining stores and liquidate its assets.

In February, the owner of Hollywood Video, filed for bankruptcy for the second time in three years. It already had closed, or is in the process of closing, about 1,400 stores under bankruptcy protection.

The Oregon company was done in by consumers increasingly getting movies through the mail, vending machines and high-speed Internet connections.

Stores are expected to close by the end of August and “going out of business” sales are expected to generate more than $62 million for Movie Gallery’s estate.