The move included closing four stores in Minnesota, where the company is left with 47 stores. The St. Paul-based video retailer had put up a number of its store leases for auction last fall, but it was unclear how many were sold and how many were rejected. Video Update now has 330 stores in the U.S. and 125 in Canada.
The company announced Monday that it received approval from bankruptcy court officials for a financing deal struck with its senior lender group and major moviestudios that should help keep open its pipeline of new video releases. The agreement creates a collateral financing pool that will offer ordinary credit terms to studios providing new release films and other products to Video Update.
Video Update recently won permission to delay filing its reorganization plan, which was due Jan. 16, until April 1. Extensions are typical in bankruptcy cases involving large retailers due to the complexity of the cases, including the hundreds of leases retailers have for their stores.
The company has also pared down annual operating costs by $4 million through streamlining and layoffs, Potter said. About 50 employees, most of who worked at thecompany's headquarters offices in the World Trade Center in downtown St. Paul, were fired as part of the cutbacks.
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