Movie Gallery Moves Toward Bankruptcy

image

Retail chain Movie Gallery, parent of game retailer Game Crazy, is set to declare bankruptcy.

A Wall Street Journal report revealed that Movie Gallery, the parent company of game retailer Game Crazy, intends on filing for Chapter 11 bankruptcy within the next month with the hopes of emerging in early 2008. The company’s plan includes converting its bonds into stock and cash to pay part of its second-lien debt. As of July, Movie Gallery carried $1.2 billion in debt consisting of $322 million in bonds, $175 million in second-lien debt and $600 million in first-lien debt. Financial advisor Lazard Freres & Co. and restructuring firm Alvarez & Marsal have been retained to handle the bankruptcy filings.

Shares plummeted 42 percent to $0.26 during Monday’s trading session due to the news. Neither Movie Gallery or its creditor Goldman Sachs have been available for comment.

Recommended Videos

The Escapist is supported by our audience. When you purchase through links on our site, we may earn a small affiliate commission. Learn more
related content
Read Article Pokemon Sleep Fans Bid Farewell to Fourth Meal Thanks To Latest Update
Image of the Pokemon Sleep General Notices banner, with a textbox that says "No More Bonus Meals"
Read Article Fortnite Players Finally Found a Way to Get One Piece Into the Game
Sanji using Diable Jambe in One Piece.
Read Article Pokemon Fans Want a Dragon-Type Eevee in Legends Z-A But Will They Get It?
Eevee and the Pokemon Legends Z-A logo against a backdrop of Lumiose City
Related Content
Read Article Pokemon Sleep Fans Bid Farewell to Fourth Meal Thanks To Latest Update
Image of the Pokemon Sleep General Notices banner, with a textbox that says "No More Bonus Meals"
Read Article Fortnite Players Finally Found a Way to Get One Piece Into the Game
Sanji using Diable Jambe in One Piece.
Read Article Pokemon Fans Want a Dragon-Type Eevee in Legends Z-A But Will They Get It?
Eevee and the Pokemon Legends Z-A logo against a backdrop of Lumiose City