Movie Gallery Inc. conduct bankruptcy auction
Movie Gallery Inc., the video rental chain, has filed a motion in bankruptcy court for the right to sell their remaining intellectual property.
Movie Gallery Inc., the video rental chain, has filed a motion in bankruptcy court for the right to sell their remaining intellectual property.
This includes selling their Hollywood Video, Movie Gallery and Game Crazy trademarks, along with customer databases and related domain names.
"Millions of consumers have been renting their movies from Movie Gallery for more than 20 years," Gabe Fried, of the asset advisory firm Streambank, told Bloomberg. "These have proven to be trustworthy brands."
Movie Gallery filed for Chapter 11 bankruptcy protection earlier this year, hiring Streambank to manage its assets shortly thereafter. This was the second bankruptcy for the company since 2007, and it coincided with the closing of over 2,000 stores. At the time of bankruptcy the company held a debt of $500 million to $1 billion against assets valued at $50 million, according to Bloomberg.
The Bankruptcy Court is set to rule on the motion by Oct. 26. Streambank expects to hold the auction in the first two weeks of November.
The video rental industry has fallen on hard times, with Blockbuster recently reporting that it plans to let leases for its storefront locations expire.
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