Movie Gallery has retained the Los Angeles-based Great American Group to assist with the liquidation. That firm has worked in the past with Eddie Bauer, Kmart, OfficeMax ands other retailers in assisting with dispositions.
Last month the retailer was notified by Nasdaq that it is not in compliance with filing requirements because for 30 days its stock had traded at under $1 and it had not maintained a minimum market value of $15 million. From Aug. 17 it had 180 days to comply with the first infraction and 90 days to increase its value.
In its second quarter, reported Aug. 10, same-store sales fell 4.7% year over year, while total revenue fell 6.7%, to $561 million. The company posted a net loss of nearly $310 million, due to the liability of loans in relation to its acquisition of Hollywood Entertainment in 2005.
In March, Movie Gallery's management said it was pursuing video-on-demand initiatives and had hired Merrill Lynch & Co., and turnaround specialists Alvarez & Marsal to help asses it real estate strategy.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 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.
