Movie Gallery Resolving Disputes with Landlords
By Associated Press
Washington, DC – Dothan-based Movie Gallery has changed the way it will conduct going-out-of-business sales at more than 500 of its video-rental outlets to satisfy store landlords.
In papers filed with the U.S. Bankruptcy Court in Virginia, the nation's second-largest movie rental chain said it has worked to resolve each of the objections brought by more than a dozen landlords of shopping centers in the past two weeks.
The landlords - including Wal-Mart Stores - had attacked Movie Gallery for writing itself a ''free pass'' to conduct the sales. They protested the lack of restrictions on the hours during which the sales could take place, as well as the number and type of signs advertising the sales.
Next week, Movie Gallery is set to auction off the leases to 520 soon-to-close stores around the U.S.
Movie Gallery filed for Chapter 11 protection on October 16th and aims to save $70 million in rent by closing the stores.
(Copyright 2007 by The Associated Press. All Rights Reserved.)