America's second-biggest video-rental chain, Movie Gallery Inc. announced its decision to close 51 video-game stores, as the shares registered a 15% drop, the biggest decline in the last three years, according to official reports.
The company which controls 4,700 retail stores in Nort America, has also forecast a slump in the movie business, which might affect future film rentals.
According to officials
statistics released by Exhibitor Relations, ticket sales are about 6% lower than this time last year.
It seems like Movie Gallery fears that the box office situation, which registers lower profits despite the presence of blockbusters like
Star Wars: Revenge of the Sith, Batman Begins and
Kingdom of Heaven, will affect the DVD rental business, implying that many of those not present in theaters might as weel not be interested in seeing the movies on DVD.
51 unprofitable Game Crazy shops will soon close, as they are already affected by an "unimpressive slate of titles" coming from movie theaters. 23 of their Game Zone stores wil be renamed with the Game Crazy brand instead.
Still, the Dothan, Ala.-based company is proud to announce its executive vice president and chief financial officer in the person of former Hollywood Entertainment Inc. leader Timothy Price.
Movie Gallery has acquired Hollywood Entertainment Inc. for $1.2 billion earlier in April.
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