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Blockbuster Gains As Rival Goes Bankrupt
Stock quotes in this article:BBI
(Blockbuster article updated with stock price movement.)
NEW YORK (TheStreet) -- Blockbuster(BBI) rival Movie Gallery filed for bankruptcy on Wednesday and plans to shutters a "significant number" of stores. This is the second time in less than three years Movie Gallery has been forced to run from creditors. The prospect of a thousand stores being eliminated from Movie Gallery's portfolio, which includes Hollywood Video stores, could be a consolation for investors who have been watching Blockbuster suffer. As a result, Blockbuster is climbing 7% to 46 cents in morning trading. In January, Blockbuster said its fourth-quarter earnings came in lower than expected due to weak holiday sales. Blockbuster now expects a loss between $183 million and $193 million. Movie rental stores like Blockbuster and Movie Gallery have, of course, faced increased competition from streaming and mail-service provider Netflix(NFLX)and kiosks from Coinstar(CSTR). -- Reported by Jeanine Poggi in New York.RELATED STORIES:
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