By: Staff Reports On: 01:51PM / Tuesday February 16, 2010
PITTSFIELD, Mass. — The city's losing one of its video rental stores with the closing of the Movie Gallery on Dalton Avenue.
Movie Gallery Inc. filed for reorganization of its American holdings under Chapter 11 bankruptcy at the beginning of February and announced the closure of nearly a third of its Movie Gallery, Hollywood Video and Game Crazy stores across the United States.
According the restructuring announcement on its Web Page, Movie Gallery said the liquidation and closures of 760 stores are "because they are not profitable and because funds from liquidating them can help us moving forward."
The Dalton Avenue store is selling off its inventory and should close within four to six weeks.
The closings do not affect the Hollywood Video on Merrill Road or the Movie Gallery in North Adams in the L-shaped mall. Also closing is the Movie Gallery at 68 Mohawk Trail, one of two Greenfield, and two stores in the Albany, N.Y., area.
Movie Gallery is the second-largest video and game renter after Blockbuster but it's been hammered by changes in rental services, particularly by upstarts like NetFlix and Redbox. This is the company's second bankruptcy in the past three years. The first shuttered at least 400 locations including the Movie Gallery in the Stop & Shop Plaza in North Adams.
The company, which once had more than 3,000 stores, expects to reduce to a stable "core" of 900, which means more closures are likely. The chain had $129 million in losses in the fourth quarter of 2009.