(Blockbuster article updated with stock price movement.)
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 - Get Report)and kiosks from Coinstar (CSTR). -- Reported by Jeanine Poggi in New York.
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