Hollywood Entertainment

(HLYW)

plunged 22% Friday after a management-led group trying to buy the video retailer said it might not be able to raise financing.

The announcement from Leonard Green & Partners LP made an $840 million buyout of the Portland, Ore., company look extremely doubtful. "Due to industry and market conditions, Leonard Green & Partners believes that the financing condition to the consummation of the merger will not be satisfied," Hollywood said in a Friday morning press release.

Hollywood said the special committee of its board is considering the company's alternatives.

Green and affiliates including Hollywood Chairman Mark Wattles agreed March 29 to

take Hollywood private for $14 a share. The stock surged to $13.70 from $10.70 on the news back in March.

However, that move was getting reversed and more on Friday, as Hollywood dropped $2.82 to $9.97.