51 Game Crazy stores to be closed by the end of June

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"The number two video rental company, Movie Gallery, which purchased Hollywood Entertainment in April, gave a weaker than expected sales forecast in an announcement today. As a result of the prospectus given, the company's stock dropped 15% today to $27.84, though it's recovered slightly in after hours trading.

As one remedy to address the weak outlook, the company said it would be shutting down 51 unprofitable locations of its Game Crazy chain by the end of June 2005. It will also be re-branding Movie Gallery's 23 Game Zone stores with the more recognized Game Crazy moniker.

Most publishers would agree that Game Crazy has historically been a valued customer, reaching a similar enthusiast demographic as EB and Gamestop. Indeed Game Crazy's presales numbers on some titles have at times rivalled EB and Gamestop despite not having nearly the same number of storefronts.

Joe Malugen, Chairman, CEO and president of Movie Gallery issued the following statement with regard to the reasons for the softness: "For the second quarter of 2005, we were originally forecasting our same-store sales to be down slightly; however, the recent weakness in the home video release schedule is having a significant adverse impact on our results. In addition, with the theatrical box-office in its 17th week of a slowdown and enduring its worst slump in two decades, we believe that the flow-through of an unimpressive slate of titles will continue to adversely impact our stores in both the rural and urban markets over the next few months."

On a somewhat lighter note, the Movie Gallery promoted Tim Price to the position of EVP/CFO, which was the same position he occupied at Hollywood Entertainment before April's acquisition."



Apparently if your GC is closing and you have a MVP membership, they are sending out $20 gift certficates (only to be redeemed at a store NOT closing) and extending MVP memberships.
 
[quote name='gizmogc']
Apparently if your GC is closing and you have a MVP membership, they are sending out $20 gift certficates (only to be redeemed at a store NOT closing) and extending MVP memberships.[/QUOTE]

What if that's the only Gamecrazy within 50 miles of you?

I guess you're just screwed then.
 
1 of those just happens to be about 7-8 minutes from where I work. A shame really, as I enjoyed going there, chatting it up with the friendly employees and getting some nice games there (especially during the Classic Plastic 3 for $15 sale).

I used my $20 gift certificate today to get me a copy of Burnout 3.

Now, the closest one to me is about 30 mins. away and I don't anticipate making special trips to go there.

Terry
 
[quote name='shrike4242']Question is, how do we find out which stores are being closed?[/QUOTE]

I got a letter in the mail letting me know my location was closing. It also had the information that the OP listed in it as well ($20 gift certificate, extending the MVP membership, etc.)

Terry
 
Wow...so this isn't 'new' news. I guess none are closing in my area or else I would have heard about it. What this means is stores NOT closing will be receiving a ton of new and used items in the next months or so. All the stores closing will ship games back to the warehouse where they will be re-distributed.
 
[quote name='paragon11']I got a letter in the mail letting me know my location was closing. It also had the information that the OP listed in it as well ($20 gift certificate, extending the MVP membership, etc.)

Terry[/QUOTE]

You having the MVP membership must be why you had the letter in the mail show up. I don't have one, though I'm merely curious of any of them in the St. Louis area (there's four of them, I think, maybe 5) are closing.
 
Oh G-d, Oh G-d please shut down the Gamecrazy near me. I have never wanted a store to close more (other than every BB in the world). And it's only this store, not Gamecrazies in general since most have been good to me and many have good employees that I will be saddened to know will be gone if their stores close. The one near me used to be good, but then the manager there quit and they hired some asshole that doesn't do anything, but sit there and play games and has no video game knowledge to speak of, so he just likes to argue with you. The same can be said of all of the employees there. Basically carbon copies of him. The guy just doesn't work. Anyhow, the majority of GC stores here though are excellent and I have made quite a few good friends from them. Anybody know of where you can find a list of stores that will be closing?

Also, I was kind of expecting this with the buyout of Hollywood Video. I was expecting some type of consolidation of stores.
 
damn, i thought this meant the stores that would be closing would mark all their games down to super cheap prices and then we could get away with murder on some really good deals. ah well. cest la vie!
 
I hope the one nearby doesn't close....its the only tolerable game store around (compared to the local EB and Gamestop)
 
HMMM i wish they had a list of stores closing..... Wonder will they discount used inventory or just send it to another store. I'm guessing just send it down the road.....
 
Sonofabitch, mine better not close!

Hopefully they'll distribute the games from the closing stores.. mine desperately needs decent used XBox titles.
 
Two of them near me are closing, but thankfully not the closest one to me (the second and third closest ones, though). It's too bad they are closing and people losing their jobs and all. In one of them they were always nice to me, but the other one really had issues (screwing up my credit, I had to get the district manager, and generally being incredibly slow, inept and rude). Anyway got a letter in the mail saying they were extending my MVP for a year. I'd rather have the $20 gift certificate, personally.
 
[quote name='shrike4242']You having the MVP membership must be why you had the letter in the mail show up. I don't have one, though I'm merely curious of any of them in the St. Louis area (there's four of them, I think, maybe 5) are closing.[/QUOTE]

The one on Manchester road between 270 and Woodsmill is closing. Its the one with the Gamestop in the same shopping center. I'm not sure about the others.

The gamecrazys near me have never really had all that great of a selection for whatever reason. Also it seems that only a 1/3 of their used games actually have manuals, which has always annoyed me. Still, it sucks for those CAG's who only have a gamecrazy to shop at.
 
At least you lucky bastards get Game Crazy, all I get is 50 GameRushes within 100 miles.

If I'm correct, they are building a Hollywood Video in the exact town I live in, but no GC.

-Cal

Plus, I'm moving down to SATX later this year, so I'll have GC.
 
[quote name='Roufuss']What if that's the only Gamecrazy within 50 miles of you?

I guess you're just screwed then.[/QUOTE]i dont care they suck anyways, atleast the one here does...lol
 
[quote name='shrike4242']Question is, how do we find out which stores are being closed?[/QUOTE]

what i'm wondering right now...
 
I hope the one near me doesn't closed, they got people who knows games and do care about the customer. They really helped me out when they did the used game sale awhile back.
 
[quote name='Slipknot9762']one better be not by me[/QUOTE]wtf what u mean is the one by me better not be, right???
 
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