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GameCrazy internal document confirms liquidation of remaining stores
click to enlarge Movie Gallery Inc., owner of the GameCrazy, Hollywood Video, and Movie Gallery franchises, is officially closing its remaining 2,415 outlets across the US. An internal memorandum obtained by Joystiq confirms reports that the company will be closing its doors and liquidating its remaining stock over the coming weeks. "A decision has been reached by the board of directors to liquidate the entire assets of the organization," the document reads. The piece also notes that the store closing sale will "likely continue for up to 60 days" and that employees who stick it out to the end will receive "store associate incentive plans" as a reward. Additionally, it assures said employees that "The company expects to continue to pay associates and provide current benefits and insurance programs during your active employment until you are released from the store or the store closing sale ends." It would appear that discount levels and liquidation plans have yet to be finalized at the company. "We are also in the process of evaluating liquidation vendors who will oversee the store closure and sale process in conjunction with our company ... the consultants will advise us on appropriate discount levels, advertising, in-store signing and in-store merchandising in order to facilitate a smooth process." And though it's not explicitly spelled out, the piece states that "most" normal operating procedures and company policies will persist through the closings. We wish the best of luck to the approximately 19,000 employees affected by the closure.
WSJ: GameCrazy officially shuttered in US alongside Hollywood Video
GameCrazy's parent company Movie Gallery Inc. is said to be shuttering the approximately 250 remaining GC stores across the United States, alongside 2,165 Movie Gallery and Hollywood Video outlets. Roughly 19,000 people are estimated to be out of work due to the closures, according to a Wall Street Journal report, and the company is said to be filing for Chapter 7 bankruptcy. People "familiar with the matter" told the WSJ that the chain considered "reorganizing around smaller core stores" before filing for bankruptcy, but the idea "never got any traction." It also appears that the 184 or so Canadian outlets will remain unaffected, but we've heard nothing official yet. Reportedly, the US stores will begin liquidation "over the next couple of months" until inventories run dry, mirroring the murmurs we heard this past weekend. While the reality that GameCrazy is suffering this fate certainly appears likely (our tips box seems to corroborate the information), we should note that Movie Gallery Inc. has yet to issue any formal statement regarding the allegations. Our calls to GameCrazy corporate have similarly gone unanswered. If you are a GameCrazy, Hollywood Video, or Movie Gallery employee with any form of official documentation on this subject, we'd love to hear from you. [Via GameSpot]
Game Crazy parent files for bankruptcy, 250 stores to remain
Game Crazy can't catch a break as parent-company Movie Gallery has filed for chapter 11 bankruptcy. When the dust settles, only 250 Game Crazy locations will remain. The company already closed over 200 locations late last year. In total, Movie Gallery plans to immediately liquidate and close 760 stores in its financially fallible trinity of brands: Movie Gallery, Hollywood Video and Game Crazy. The company hopes to emerge from the "restructuring" with a "new and sustainable business model centered on a smaller base of profitable stores." The only division of the business unaffected by the bankruptcy is the company's Canadian operations. At least that's one good thing, eh? [Via Industry Gamers]
Blockbuster kiosks to offer movies on SD cards, you some candy as you checkout
Blockbuster's been trying all sorts of, um, innovative things to get more foot traffic in its stores, but thanks to a dastardly invention known only as "Netflix," that very task has proven exceptionally difficult. Now, it seems the flagging movie rental company is giving one more far-flung idea a whirl: movies on SD cards. Around six Blockbuster and Hollywood Video stores will soon begin offering titles on SD cards, though the included DRM only allows customers 30 days from the purchase date to view it, and once it's fired up, you've just 48 hours before it vanishes completely. Each rental will cost $1.99, and while we definitely see the benefit of renting something that you don't have to return, we're still skeptical that folks will be more willing to make even one trek for a card when Netflix brings it all to one's mailbox (and PC, etc.) for just $8.99 per month.
Movie Gallery fires up in-store PowerPlay subscription plan
At this point, Movie Gallery and Hollywood Video are just children in the grown-up world of video rentals, but even we can't help but appreciate its latest, um, attempt. After finding that people don't actually enjoy waiting for DVDs to arrive by mail, it has concocted its very own in-store subscription service, dubbed PowerPlay. In theory, at least, it's a fantastic plan; users are able to pop in, check out a DVD or Blu-ray for an unlimited window of time (or video game for five days), and then return it at their leisure. The problem? The unlimited service is a staggering $39.99 per month, and so far as we can tell, you can only have one flick at a time checked out. Other plans are certainly available, but none of 'em come close to the awesomeness of Blockbuster / Netflix. Sorry, but it's true.[Via VideoBusiness, image courtesy of CPDothan]
Movie Gallery to enter on-line video rental service
Movie Gallery -- the media cats behind Hollywood Video and Game Crazy stores -- just announced a foray into the online video rental service. Set to launch sometime in mid-to-late 2007, the new service is meant to complement its brick-and-mortar business. They also announced an extension to their movie kiosk program by adding another 200 movie vending machines to the 74 units already occupying high traffic areas in malls and supermarkets. How the new rental service (no mention of download-to-own) will integrate (if at all) with their recently acquired MovieBeam service is unclear. One thing's for sure however, Blockbuster had better get a move on if they hope to compete in this redefined marketplace which is both busting at the seams while simultaneously converging.[Via eHomeUpgrade]
