MOVIE GALLERY FILES FOR BANKRUPTCY

Unable to put off any longer what many analysts had long regarded as the inevitable, Movie Gallery filed for bankruptcy today (Tuesday), brought down by a $1-billion debt load heaped on it when it acquired rival Hollywood Video for $1 billion two years ago. The No. 2 home-video rental company behind Blockbuster outlined plans to reorganize its debt under bankruptcy supervision and to remain in business while it did so.

16/10/2007