UPDATE 10/16: Movie Gallery files bankruptcy, GameCrazy stores NOT affected

Scorch

Scorch

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//edit: This is probably better suited for the OT forum

I just caught this little blurb. For those that don't know, Movie Gallery owns Hollywood Video and Game Crazy.

*sigh* I get a feeling that GC is about to get sold to Gamestop just so Movie Gallery can continue plugging away with Hollywood Video.

http://www.chron.com/disp/story.mpl/business/5045863.html

Movie Gallery, a video-store chain burdened by more than $1 billion of debt, said it may not have enough cash to continue operating after reporting its fifth straight quarterly loss.

The company, based in Dothan, Ala., has tapped its entire credit line and said Goldman Sachs Group may foreclose on its loans by Tuesday if it is not satisfied with Movie Gallery's attempts to raise capital. The company has been struggling with debt since buying Hollywood Video for $1 billion in 2005 to compete with Blockbuster and Netflix.


"They kind of have to declare bankruptcy," predicted Michael Pachter, an analyst at Wedbush Morgan Securities in Los Angeles.
Click to expand...
 
No wonder the Regional Manager is diehard about selling discount rental cards and snack combos. $1 billion in debt? Christ.

At the store I work at we only bring in about $400-500 a weekday, and maybe $700-$1000 tops on busy days (Tuesday, Friday, Saturday). I was surprised at how little Movie Gallery makes per day.
 
Does this also impact Hollywood Video or just Gamecrazy?

I would hate to have to start renting movies from Blockbuster.
 
Forget Blockbuster, there's plenty of other alternatives. It's Game Crazy that's more important. If that goes, that leaves Game Rush and GameStop/EB Games as the only gaming retailers. :( Lord help us if GameStop tries wrapping their slithery hands around Game Crazy.
 
Gamecrazys are mad small. I don't think you could fit a GS in there.

They'd probably just be gone, I don't see GS buying them.
 
[quote name='Tsukento']Forget Blockbuster, there's plenty of other alternatives. It's Game Crazy that's more important. If that goes, that leaves Game Rush and GameStop/EB Games as the only gaming retailers. :( Lord help us if GameStop tries wrapping their slithery hands around Game Crazy.[/quote]

Arent most Gamecrazy locations located inside hollywood video and movie galery stores? I know all mine are. I dont see Gamestop buying up the huge Hollywood video stores just to use the small Gamecrazy rooms.

Would Gamestop buy the locations to turn into Gamestops or would Gamestop Just buy the Gamecrazy Franchise/Name?

Either way I am more concerned about Hollywood video going under because that is the only decent B&M to rent movies from. I use Gamefly for game rentals so I am not worried about renting games and I dont wish to do any renting at Blockbuster or use Netflix.

I do agree that loosing Gamecrazy would be a major upset though because used game prices and Trade values are incredibly better at Gamecrazy than EB or Gamestop.
 
You guys are aware that they could buy the GameCrazy company, take their inventory and just shut down the stores, right? The size of any given location has nothing to do with whether or not another company will buy them or not.

But yes, this could possibly impact Hollywood Video, as they're also owned by Movie Gallery.
 
Sad but true. Both Holloywood and Gamecrazy are in danger. Most store will be having a store closing sale. 50% off at Holloywood video and 30% off at Gamecrazy on all inventory. Guides will be 50% off. Can't be combine with the members card and all sale is final, no refund. No video game system or new release will be sold though. They were told by corprate to ship them all back.
 
[quote name='Scorch']You guys are aware that they could buy the GameCrazy company, take their inventory and just shut down the stores, right? The size of any given location has nothing to do with whether or not another company will buy them or not.

But yes, this could possibly impact Hollywood Video, as they're also owned by Movie Gallery.[/QUOTE]
Then it doesn't really matter if GS buys GC's stock.
 
[quote name='Dr Mario Kart']And this will be starting when? A lot of stuff wont move at a meager 30%. They're gonna have to up that later if they REALLY want it gone.[/QUOTE]

It's happening right now and others will be impacted soon.
 
[quote name='blueweltall']Sad but true. Both Holloywood and Gamecrazy are in danger. Most store will be having a store closing sale. 50% off at Holloywood video and 30% off at Gamecrazy on all inventory. Guides will be 50% off. Can't be combine with the members card and all sale is final, no refund. No video game system or new release will be sold though. They were told by corprate to ship them all back.[/QUOTE]
When does the 30% take place?

Or is this just for your store?
 
[quote name='zewone']Gamecrazys are mad small. I don't think you could fit a GS in there.

They'd probably just be gone, I don't see GS buying them.[/QUOTE]

IDK where you live but all my GC's around home and down at school are fairly sized. Actually now that I think of it, all 3 of the ones here at home are bigger than or the same size as all the EBs and GSes I know of.
 
[quote name='A Happy Panda']IDK where you live but all my GC's around home and down at school are fairly sized. Actually now that I think of it, all 3 of the ones here at home are bigger than or the same size as all the EBs and GSes I know of.[/QUOTE]
Here in CA, every single one I've been to (in and out of town) are about the 1/3rd the size of an average Gamestop.

So, no more trade ins since everything is being clearance I assume. That sucks, I was planning on taking some games their next week to pick up Bioshock. Hopefully, my local joints aren't liquidizing yet.
 
[quote name='A Happy Panda']IDK where you live but all my GC's around home and down at school are fairly sized. Actually now that I think of it, all 3 of the ones here at home are bigger than or the same size as all the EBs and GSes I know of.[/quote]
Are they located inside Hollywood Video or Movie Gallery video stores?

[quote name='zewone']Here in CA, every single one I've been to (in and out of town) are about the 1/3rd the size of an average Gamestop.

[/quote]

All my Gamecrazy's are the same way
 
There are a very small number of Gamecrazys that are stand alone and not inside a hollywood video. These stores are normally very large.

I only know of 3 offhand, if I recall correctly in the maybe 10 states that I've been in that have had Gamecrazys.

1. Garland, northeast Dallas area.
2. Southeast/East Houston
3. downtown St Louis, Missouri.
 
[quote name='Dr Mario Kart']More importantly, are they getting the 3 games I preordered that ship today? (Persona 3, Luminous Arc, Fatal Fury)[/QUOTE]

I don't know for sure about your store but the one that was closing right now was told to ship all the new inventory back. I don't know if that include preorder or how they will handle it.
 
[quote name='JDUB X']Are they located inside Hollywood Video or Movie Gallery video stores?



All my Gamecrazy's are the same way[/QUOTE]

They're inside Hollywood Videos.
 
[quote name='Tsukento']Forget Blockbuster, there's plenty of other alternatives. It's Game Crazy that's more important. If that goes, that leaves Game Rush and GameStop/EB Games as the only gaming retailers. :( Lord help us if GameStop tries wrapping their slithery hands around Game Crazy.[/QUOTE]

That's true, but from a competition standpoint FYE, BB, CC, TRU, and all the other big retailers will still be there. Gamestop will lose the majority of their competition in the upscale pawn shop industry, but when it comes to new game distribution there's still plenty of competition out there. The future of games is in digital delivery anyway, so most of those stores were going to die out sooner or later.
 
This sucks major. If Hollywood Video goes under, then I will have nowhere - and I mean nowhere - to rent videos or games anymore. I still have a most of my coupon sheet from when I bought a system there and an entire coupon sheet that I only got a couple months ago. I also have two other coupons that are slightly expired, but my Hollywood Video has always been nice and good about accepting expired coupons I better start using them then.

I got onto their MVP program years ago and have never left it since, even when they stopped offering it in general and to anybody else. 3 movies out at a time as many times as I want for the month for only $15 (started at $9.99 a month) is an unbelievable deal, especially considering that the store is right around the corner from my house so that I can pretty much go, rent and watch the movie, and then quickly exchange it. There's no limit to this per month so some months I would rent something like 20-30 titles. They once told me that they never made money off of me.

Hell, I'm friends with most of the employees and have known them since forever so most of them usually hook me up anyhow on new releases, etc I was wondering why so many employees were being either replaced, had quit, had been replaced, sent to other stores, etc. Uggh..they're the only decent movie chain left with good prices and great selection. There are no stores around me for several miles (6-7 at the least) since the BB by me went under years ago.

Gamecrazy was also fantastic. Good promotions on new games, decent prices on old stuff, and they didn't have those shitty stickers EB has. Far better employees.
 
This would also make sense for why my Gamecrazy told me that they are going to stop offering the free 12 month rentals with any system purchase unles you also get the warranty from them with the system.
 
I'll drop by to see what's on sale, but I really hope the Movie Gallery near me doesn't close - other video stores in my area are twice as far away.
 
Doesn't surprise me. I know over the weekend, my wife dragged me clothes shopping with her, so I decided to walk over to the Hollywood Video/Game Crazy, only to find out that they closed (late July). I hadn't even heard of anything, I was in there in late June, and there wasn't any information up that they were closing.

It's only one location, but I'm guessing their consolidating. Wonder if they'll declare bankruptcy, it's a great way to magically eliminate a lot of that debt.
 
If the GC near me closes I'll be getting my videogames and accessories online only, except when I buy a new game (rare for me) or GS has a sale on used games to make them GC prices. :cry:
 
wow, so weird since i just came back from Maryland and saw these stores for the first time and actually saw one that was closing down....had no idea it had anything to do with GC and Hollywood video...

also in Salisbury i visited my first gamecrazy and must say it was tiny but it was interested going through the old ps1, saturn, dc games
 
I say anyone who has credit left should get on the ball and find out how soon they have to spend it all.

Course this could be just be early panicing.
 
Moving this thread to Deal/Shopping Discussions as that's a more appropriate location.


The most recent relevant Investor Release on the Movie Gallery site is from July 23, alluding to their negotiations with their lendors. Curious that in four days, they haven't released the details that the Houston Chronicle revealed on the 10th (see OP).

Reading on wiki, when they took over HV, Hollywoods stock was ~$14 per share. Movie Gallery's stock is (lemme refresh) currently a whopping 33¢.
 
well, as long as the one by me stays open until tuesday I'll be good. I have $86 in store credit, I'll get Bioshock and a 1600 point card and close it out, that is, if they're getting Bioshock...
 
Oh man... I hope this isn't true because if it is, then that means we will no longer have any options around here. We already lost one good independent store and another went to the crapper. Then EB was bought out by GS and now this?
 
[quote name='radjago']There are four Hollywood-tied GCs and one stand-alone GC in this area and as far as I know, none of them are closing.[/quote]

Yep, asked the one in Springboro when I went today. They said there's nothing to worry about as long as the store is doing well financially.
 
The stores to blame are The Walmart's Best buy and Circuit City
Why rent a movie when you can buy for 3.99 at those stores. There is no reason. Games for 8.96 at CC clerance are 20.00 or more at Gamecrazy. Sad but times have been changing. Soon to go will be them and then gamestop will go through there decline too. The competition gets tougher when you got the big stores discounting games and accs, making their to be profit to be made.
 
Movie Gallery was hands down the worst video store I've ever been to. I've lived by a few of these and they consistently had high prices, low movie and game availability, and at best apathetic employees at worst downright rude and offensive employees. "Hey Lackey, I can't find so and so movie. Lackey: We don't have it, only stupid people watch that movie anyway. Thanks guy, I'll leave without renting anything." Movie Gallery can rot in bankrupt hell.

Luckily I've had a few real nice independent stores around too that usually had better prices, and more availability. Our current haunt is Family Video, we moved to Iowa last year and there are two near us now, we have accounts at both and they are fantastic. Good prices, 2 four week old releases plus any box of candy and a box of popcorn for 6.99. The staff at both stores have always been nice, when we signed up they toured us around. Whenever I have had a question about availability they jump at the chance to help. Plus most of the people I've dealt with are real movie buffs, I mean they know their stuff. Each employee gets like 5 movie picks of a month for display. I'm convinced that because they are a private company they don't have to be accountable to the shareholders so they can offer better deals, and pay for more competent employees.
 
Some insight from the inside of Hollywood at least:

The Movie Gallery buyout was basically similar to the EB/GS buyout. As soon as Movie Gallery bought Hollywood everything went to hell. Movie Gallery runs their company completely different from the way Hollywood did originally which caused a great amount of problems internally, and has gone on to alienate former managers and customers sick of the "new" useless promotions. Our store has lost many customers just simply due to the customer being sick of being asked if they want consessions, playguard, mvp, and whatever the promotion of the month is (Entertainment Weekly, Starlight Starbright donations, ect) every time they get rung out.

We've known about the financial problems for awhile now. Its not completely dire yet. There is two rumors floating about Hollywood right now on potential buyers for Hollywood. One is Netflix, who might be looking at a way to expand into B&M to combat blockbuster. The other is that Mark Wattles (the origanal owner) may be looking to purchase the company back. Both are just rumors heard from higher up people in the company so they could just be complete BS , but still its nice to dream. Not sure how either of these will effect GC though. Only can speak for Hollywood although Id imagine theyd stay together.

Either way Movie Gallery will probibly sell Hollywood and GC even if it does get out of its finacial problems. The markets they both aim for are too different and they're losing too much money to keep em around.
 
[quote name='shingo_eg6'] Movie Gallery runs their company completely different from the way Hollywood did originally which caused a great amount of problems internally[/quote]
Yep, the GC I went to today had employees that seemed to be pissed since they had a couple stacks of games sitting in the back. It's only because they ran out of sleeves to put the discs in. Meaning no sleeves = no way to just put the cases out on the floor.

The manager said something about they have to get approval from the DM to get the sleeves. One of the employees made a remark something like "I wonder if Movie Gallery has to get approval". Guess after I left, he was going to take money out of the petty cash fund and go out and buy some sleeves. There's a couple other problems they mentioned, but that seems to be the most ass backwards policy I've ever heard of.
 
[quote name='blueweltall']Sad but true. Both Holloywood and Gamecrazy are in danger. Most store will be having a store closing sale. 50% off at Holloywood video and 30% off at Gamecrazy on all inventory. Guides will be 50% off. Can't be combine with the members card and all sale is final, no refund. No video game system or new release will be sold though. They were told by corprate to ship them all back.[/quote]

which store in CO? or all stores in CO?
 
Thinking about it now it's odd that the employee told me that my store credit would be good as long as they were still in business.
 
[quote name='guinaevere']Moving this thread to Deal/Shopping Discussions as that's a more appropriate location.


The most recent relevant Investor Release on the Movie Gallery site is from July 23, alluding to their negotiations with their lendors. Curious that in four days, they haven't released the details that the Houston Chronicle revealed on the 10th (see OP).

Reading on wiki, when they took over HV, Hollywoods stock was ~$14 per share. Movie Gallery's stock is (lemme refresh) currently a whopping 33¢.[/quote]
No offense, but who are you?:D I've never seen you around, nor did I ever know that you were a mod. Cool. I guess me and good ol' scorcho got passed over again for modship, but oh well;)
 
I guess I'll make the rare out-of-the-way drive to the local Game Crazy to see what's up.

The clerks at my store are prudes, always very pushy with preorders and spieling about purchasing an MVP membership whenever I'd get one game resurfaced each season. I've never gotten a penny guide there, either, and inside Hollywood Video, the Game Crazy is about 1/4 the size of any Gamestop.

I know it's bad for the used market if Gamestop has a monopoly and I'm sure there are good GC's around, but I must say I'm indifferent towards this store folding if the rumors are indeed true. Good thing I never had any credit there.
 
[quote name='hiccupleftovers']Know offense, but who are you?:D I've never seen you around, nor did I ever know that you were a mod. Cool. I guess me and good ol' scorcho got passed over again for modship, but oh well;)[/quote]Give it up man! You aren't gonna be a mod.
 
Movie Gallery is a joke so I'm not surprised to see this. They don't have new release games for rent and think people want 2002 and 2003 sports games to rent. One near me is going out of business and all games are $24.99 less 20% off so $19.99. The problem with this is that games like NHL 2K7 for PS2 that had a MSRP of $19.99 new are that price and older XBox, PS2 and GC games GS has for $3.99 - $4.99 used. They'll never sell at that price. Even at 90% off, $2.49, I wouldn't buy most of the games they have for sale. All next gen games which was a handful of 360 games were pulled before the liquidation started.
 
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