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Monday August 20, 2007 12:19 pm

Game Crazy Parent Company Struggling

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Posted by Paul Hamilton Categories: Corporate News

Game CrazyMovie Gallery, the parent company for brick-and-mortar game retailer/renter (and one of the few remaining chain competitors to GameStop/EB) received an extension on its $900 million restructuring loan as it continues to struggle in an increasingly difficult market. Movie Gallery also owns Hollywood Video and and eponymous stores. CEO Joe Malugen said, “Despite the challenging market conditions for Movie Gallery and the entire rental industry, we are continuing to work with our lenders and our outside advisors to help address the Company’s current financial situation. We plan to continue to operate the Company without interruption as we work through this challenging period.”

So clearly the word of the day is “challenging” but the company seems to be angling toward an acquisition or merger to overcome those challenges. So far they have had to close stores and reduce staff to try and meet financial obligations, and this new extension has given them until August 27th before the loan is considered defaulted.


Read More | CNN Money via Joystiq


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Comments:

I LOVE WORLD OF WARCRAFT!!!

monica seaman monica seaman 5/25/09 2:31 pm

A few weeks ago I was in Hollywood Video located in Town and Country Shopping Center in Corpus Christi, Texas, a store where I have rented movies for years.  There were several large signs up that there was “No More Late Fees”.  I was delighted as I’ve always thought late fees were gouging customers.
I rented a few movies, and was late turning them in.  I wasn’t concerned though because of the new policy of no late fees.  The movies were turned in seven days late.
Today, I went to rent more movies and was told there was a balance.  When I inquired, the balance was for late fees on the movies I previously rented.  I was not happy with the news.  The clerk was extremely confusing when I questioned the fees.  He was totally trying to mislead me on information regarding the late fees and fees for the movies I was wanting to rent.
Then, the Manager, if you can call her that, had a very sarcastic tone of voice when she greeted me.  You should be ashamed of that staff.
Needless to say, I did not rent any movies today.  Nor will I in the future. 
By the way, there was only one other customer in the store.  If you’re having financial problems, you may want to look at closing that store, or at least dimishing the rude staff.


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