Declining Rental Market Lands Movie Gallery In Ch. 11

Law360, New York (October 16, 2007, 12:00 AM EDT) -- Movie Gallery Inc., the nation's second-largest video rental company, filed for Chapter 11 protection Tuesday, citing an industry-wide decline in the market for video rentals, as well as competition from cable television, DVD retailers and rivals Netflix and Blockbuster.

The company lodged its bankruptcy petition in the U.S. Bankruptcy Court for the Eastern District of Virginia, listing $892 million in assets and more than $1.4 billion in liabilities.

The company said in a statement that it wants approval to enter into a $150 million debtor-in-possession financing...
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