Search
 

Video Rental Chain Gets Court Approval for Interim Financing Plan

ST. PAUL, MN- Struggling Video Update has closed 120 underperforming stores since

By Jim McCartney | Updated on January 23, 2001

ST. PAUL, MN-Video Update, which filed for protection from creditors in September, has closed 120 stores in recent months, most of them in the U.S. “They were our underperformers,” said Daniel Potter, Video Update’s chief executive officer.

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.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.