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Movie Gallery/Hollywood Video to Close

Movie Gallery — the company that owns Hollywood Video stores — will close all of its remaining US outlets, according to reports.

The nation’s second-largest video-rental chain, which employed 19,000 workers when it filed for bankruptcy in February for the second time in two years, notified employees on Friday of the liquidation, according to The Wall Street Journal.

Movie Gallery, owned by the investment firms Sopris Capital Advisors and Aspen Advisors, had already begun closing more than half of its 2,415 domestic stores. The closures will be completed over the next few months, according to the paper.

The news is the latest blow to video-rental stores, which have been pounded by competition with online and on-demand video-rental companies.

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