Movie Rental Firm Movie Gallery Considers Sale

Movie and video game rental chain operator Movie Gallery, which also earlier this year bought VOD service Moviebeam, is evaluating its strategic options, including a possible sale, after being unable to meet certain financial obligations. After a bad Q2, the company was not able to meet its payments to Goldman Sachs Credit Partners…it is working on a solution, including a possible sale, as it negotiates with the lenders.

The No. 2 movie rental company in U.S. said it will accelerate store closures and consolidations. It has fully drawn the remaining availability of its credit revolver and has about $50 million of cash on hand.

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