Game Crazy closing down completely
Remaining game-rental outlets being shuttered along with all US Movie Gallery and Hollywood Video locations, reports the Wall Street Journal.
In February, bankrupt video renter and retailer Movie Gallery announced it was closing all but 250 Game Crazy locations. The game-rental chain was a subsidiary of Hollywood Video, and its outlets were paired with the movie-rental franchise, which Movie Gallery bought in 2005. Some 545 Hollywood Video locations were also to survive.
Now, the Wall Street Journal reports that Movie Gallery, facing its second bankruptcy filing in roughly two years, has decided to shut down entirely. The move will see all 2,415 US Movie Gallery, Hollywood Video, and Game Crazy locations close in the coming months, with about 19,000 people losing their jobs. The fate of the company's 184 Canadian locations is unclear, reports the Journal, citing "people familiar with the matter."
Movie Gallery's closure was blamed on both its $600 million in debt, much of which was incurred by the Hollywood Video purchase, and increased competition from automated Redbox video-rental kiosks. Another major contributor was the rise of Netflix, which rents DVDs via mail, as well as via online streaming to PC, Macs, Xbox 360s, PlayStation 3s, and Wiis.
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