"Our Children and Grandchildren are not merely statistics towards which we can be indifferent" JFK

Sunday, May 2, 2010

Movie Gallery closing all remaining stores

Wall Street Journal
Hollywood Video chain owner Movie Gallery Inc. plans to shutter its remaining U.S. stores.

The movie-rental chain, which filed for bankruptcy in February for the second time in just over two years, had already commenced plans to close more than half its 2,415 U.S. outlets. The closure of the company's remaining stores will likely take place over the next couple of months or so, said people familiar with the matter.

It remained unclear whether the company would close its roughly 184 Canadian outlets. Movie Gallery's Canadian operations weren't part of its February bankruptcy filing.

Personnel at stores spread across the U.S. said the company notified employees of the additional closures on Friday. Movie Gallery couldn't be reached for comment.

The Wilsonville, Ore., chain had hoped to restructure in bankruptcy court and continue operating around a smaller set of viable stores. The company employed more than 19,000 people when it filed for bankruptcy. Reorganizing around smaller core stores was "honestly debated," said a person familiar with the situation. "It just never got any traction."
Link to complete WSJ Article

Jim Cramer is still pounding the table on commercial real estate.

4/13/10-NEW YORK (TheStreet)
By Andrea Tse
On Tuesday's CNBC Stop Trading! segment, Jim Cramer, upon hearing the sound of real estate investment boss Quintin Primo's name, declared that commercial real estate has been terrific.

4/6/10-Scott Rutt TheStreet.com Staff Reporter
Cramer said that real estate trusts that deal in commercial real estate are also strong, as evidence by Federal Realty Trust (FRT) and Vornado (VNO). He said these stocks have been mutilated by fear and went down too far, but now there's just no stopping them.

Time will tell Cramer....maybe you will lease some of the 2,415 locations? Grandpa will address commercial real estate in greater detail in a follow up post.

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