Bankrupt video chain Movie Gallery said in court papers Wednesday that it owes creditors $1.4 billion of which $902 million is owed to secured creditors. The total figure is slightly higher than the $1.2 billion that Movie Gallery borrowed to acquire rival Hollywood Video in 2005. The company has been closing unprofitable stores and continuing to operate, although analysts have noted that video stores in general are facing increasing competition from online video renters and from kiosks installed in restaurants, grocery stores, and other retail outlets, which rent movies for about one dollar a day, less than a third of Movie Gallery's fee.




06/12/2007