Succumbing to pressure from online offerings from NetFlix and On-Demand services, Movie Gallery in Berryville will close its doors. While no hard date was given for the last day of business, store employees said that it would be closing within the next sixty days. The closure is part of a major restructuring of the parent company based in Wilsonville, Oregon. Movie Gallery, Inc., is the second largest North American video and game rental company behind Blockbuster Video which shuttered its only nearby location in January.
On February 2, 2010, Movie Gallery, Inc., filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code. In the court filing, the company cited the economic and competitive realities facing its business. Over the past two years, Movie Gallery took a number of steps to respond to challenges in the marketplace and position the company for future success, including closing several hundred stores across the country that were performing poorly; however, those actions were not sufficient to stave off bankruptcy.
The store in Berryville is one of of approximately 760 Movie Gallery, Hollywood Video and Game Crazy stores that will be immediately liquidated and closed by the parent company. Other stores in our area slated for closure include locations in Front Royal, Manassas, and Hancock, Maryland. Movie Gallery’s goal is to use the funds from liquidated stores to emerge from the restructuring process with a new and sustainable business model centered on a smaller base of profitable stores.
Currently, the Berryville store is conducting a store closing sale and is offering significant discounts on all their inventory of movies and games. Once it closes the only option Berryville residents will have for movie rentals in town will be Red Box Kiosks located at nearby convenience stores.
Movie Gallery is located at 115 West Main Street Berryville, VA 22611 Phone: 540/955-5525