Game Crazy owner facing massive financial problems
Bad news for fans of video game retailers that don't have a "Stop" or "EB" in their name. Movie Gallery, owner of over 600 Game Crazy stores nationwide, is having trouble paying off massive debts accrued from its purchase of Hollywood Video and Game Crazy in 2005. The company posted massive losses in the second quarter of this year and creditors just granted a final extension on the company's loan payment obligations to Aug. 27.
The company will stay open "without interruption as we work through this challenging period," according to a press release, but rumblings around the industry are that they might have to sell off assets before too long. If that happens, you can bet that other video game retailer will be ready to swoop in with a bid to increase its market share. Hooray for monopolies!
[Thanks Chuck]
