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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