Bankruptcy Puts Future of Game Crazy Stores in Jeopardy Again

Movie Gallery, the rental company that also owns outlets Game Crazy and Hollywood Video, has just filed for chapter 11 bankruptcy for the second time in the past three years. As we reported in September of last year, nearly one-third of Game Crazy stores had previously been closed due to financial woes.

Industry Gamers reports that after this round of closures the chain will be down to only 250 remaining Game Crazy outlets. From the around 480 stores we estimated they had left in our prior story that would peg this reduction at something on the order of another 230 locations. The company also plans to shutter 760 of its rental outlets leaving 1,111 Movie Gallery and 545 Hollywood Video locations.

In an official statement, Movie Gallery states that the previous round of store closings proved insufficient, claiming that "...the company determined that [another] Chapter 11 filing was the appropriate next step in its ongoing restructuring." Movie Gallery continues to focus on a strategy of fewer, more profitable stores.