News
Movie Gallery cites 'cannibalization' by redbox kiosks in bankruptcy filing
February 3, 2010
Movie Gallery, the nation's No. 2 DVD-rental chain, has filed for Chapter 11 bankruptcy protection for the second time in three years, citing competition from redbox's DVD-rental kiosks as "one of the most significant" factors, according to the Portland (Ore.) Oregonian.
The Oregonian quoted a Movie Gallery official as saying in court documents that "the cannibalization of rentals by DVD-dispensing kiosks operated by Redbox, which offer low priced rentals and convenience," was one of the leading factors in the company's poor performance since its 2007 bankruptcy.
The chain also announced plans to close nearly 800 underperforming stores.
Related Media
Subscribe
Get the latest news and resources from Kiosk Marketplace.
