villages in iran see movi iran . for the video conferencing software see tandberg . movie gallery inc. industry retail fate bankruptcy founded 1985 founder joe malugen harrison parrish defunct 2010 headquarters usa area served us canada key people wes sand coo products vhs dvd blu ray and video game rentals and sales subsidiaries hollywood video moviebeam reel.com vhq website moviegallery.com hollywood video with attached game crazy location . movie gallery inc. former nasdaq ticker symbol movi 1 was the second largest movie and game rental company in the united states and canada behind blockbuster video . the company rented and sold blu ray discs dvds vhs tapes and video games . founded in dothan alabama the company was headquartered in dothan and later in wilsonville oregon . on april 30 2010 movie gallery announced it was closing and liquidating all of its stores per a filing of chapter 7 bankruptcy . 2 3 at its peak the firm had about 4 700 stores in north america operating mainly under the movie gallery hollywood video and game crazy brands . the last of the company s stores were closed in august 2010 . in 2011 three movie gallery locations in northwest arkansas reopened by an independent business owner who acquired the trademark rights in arkansas . in 2013 an independent business man in jackson mississippi acquired the trademark rights in mississippi to movie gallery and hollywood video and announced intentions to reopen select previously profitable stores . most regular movie gallery locations were located in rural areas 4 5 while hollywood video locations which competed directly with blockbuster were located in urban areas . 5 contents 1 history 1.1 movie gallery 1.2 moviebeam 1.3 hollywood video 1.3.1 purchase of hollywood video 1.4 downfall 2 headquarters 3 see also 4 references 5 external links history edit movie gallery edit movie gallery was formed in 1985 by joe malugen and harrison parrish in dothan alabama . through its wholly owned subsidiary m.g.a. the company s founders began operating video specialty stores in southern alabama and the florida panhandle and franchising the movie gallery store concept . by june 1987 the company owned five stores and had a franchise operation of 45 stores . in 1988 the company began to consolidate the franchisees into company owned stores . by 1992 the company had a total of 37 stores and annual revenues of 6 million . in august 1994 the company completed an initial public offering of its stock . with the proceeds from this offering the company began to quickly complete acquisitions of various video chains primarily in the southeast . in early 1995 the company raised additional public funds and continued the acquisition and development of stores . by the middle of 1996 only 22 months after beginning its aggressive expansion strategy movie gallery had grown to over 850 stores through over 100 separate acquisitions . in 1999 movie gallery announced plans to build 100 new stores . the company completed an 88 store acquisition of blowout entertainment in may and ended the year with more than 950 locations in 31 states . in 2000 movie gallery again set its goal at opening 100 new stores and relocating 25 . this goal was surpassed . the company moved forward with its largest single chain acquisition to date expanding its base of stores by 30 % in late december 2001 . this addition of video update stores to the movie gallery family launched the company s international presence with 100 retail locations in canada . following the completion of the video update acquisition movie gallery achieved the 2 000 store mark in 2003 . in 2005 the company completed the largest acquisition to date with the hollywood entertainment merger . this combination of companies increased the store total to 4 700 with revenues in excess of 2.5 billion . in addition movie gallery opened 61 new stores in western canada with the acquisition of vhq entertainment . moviebeam edit moviebeam was a settop service offered in larger cities in which customers could download movies to a settop box . most movies expired within 24 hours of downloading . the company was originally founded by disney and other investors as an alternative to online movie downloads . a special settop box had to be purchased by consumers for the service at a retail price of 149.95 . most major movie studios provided new release content to the service . however moviebeam failed to gain any serious traction in the marketplace . moviebeam was shut down on december 15 2007 . 6 as of june 2008 the remnants of moviebeam including its trademarks and other intellectual properties was sold to an outside investors group for approximately 2 million as part of the company s restructuring . all in store kiosks for the service were then removed as well . hollywood video edit main article hollywood video a typical hollywood video store hollywood video a subsidiary of movie gallery inc. operated from wilsonville oregon as a dvd and video game rental shop chain in the united states . it was started in 1988 by former ceo mark wattles and his wife . the chain was the largest direct competitor of blockbuster video until it was purchased by movie gallery in 2005 . hollywood video declared bankruptcy in february 2010 and announced that it would shut down three months later . 7 purchase of hollywood video edit hollywood video was the target of a hostile takeover attempt initially announced at the end of december 2004 by competitor blockbuster video . in february 2005 blockbuster announced an exchange offer of 14.50 per share 11.50 cash and 3.00 in blockbuster shares . 8 in order to create a stronger position against the hostile takeover hollywood video agreed to a buyout on monday january 10 2005 by its smaller competitor movie gallery . movie gallery paid 860 million 13.25 per share and the assumption of 380 million in debt . stocks closed at 13.85 on january 10 after these news . blockbuster then dropped its purchase plans citing anti trust concerns . movie gallery completed its purchase of hollywood video on april 27 2005 . citation needed downfall edit store closing in wyoming as part of the original re organization from the 2010 bankruptcy the company began having financial difficulties and announced the closure of 520 stores in september 2007 . 9 at the time movie gallery had about 4 500 locations . 9 the next month the company filed for chapter 11 bankruptcy protection under the u.s. bankruptcy code . 10 11 because of these troubles the stock price dropped below 1 per share and was removed from listing on the nasdaq stock exchange in november 2007 . 12 an additional 400 stores were scheduled to close during the bankruptcy reorganization . 13 movie gallery emerged from chapter 11 in may 2008 10 and appointed c. j. gabriel jr. as the new chief executive officer . founder and former ceo joe malugen continued to serve on the movie gallery board of directors until leaving on july 30 2008 . 14 the company relocated its headquarters to wilsonville oregon home of the hollywood video subsidiary in late 2008 . 15 16 17 in january 2009 they closed their wilsonville distribution center . 17 early 2009 movie gallery operated about 2 700 locations and 1 300 hollywood video locations in the united states . 18 canadian operations include over 200 movie gallery branded stores as well as approximately 60 under the vhq brand in western canada . citation needed in 2009 movie gallery closed its wilsonville oregon distribution facility merging it with one in nashville tennessee . 19 the chapter 11 reorganization plan failed to solve all of the company s problems ; movie gallery s stock fell from 1.25 at close in october 2009 to 0.05 a share at close on december 3 2009 20 and many locations fell behind on rent . 21 on february 1 2010 stores received a report stating that about 800 stores were to be shut down . the company hired the law firm of sonnenschein nath & rosenthal to prepare for a second filing of bankruptcy 22 and on february 3 2010 they again filed for chapter 11 bankruptcy protection . 23 during a company wide conference call on april 30 2010 it was announced that all u.s. hollywood video movie gallery and game crazy stores would file for chapter 7 bankruptcy in may 2010 . 2 on june 8 2010 the company s canadian stores also entered liquidation . 2 the last us movie gallery and hollywood video locations closed on july 31 2010 and the liquidation sale was completed . the remaining canadian stores closed during the week of august 8 . the contents of the company s headquarters were auctioned off in august 2010 . 24 the company prior to hollywood video and game crazy presently exists as an online blog . headquarters edit movie gallery originally had its headquarters in dothan alabama . 25 26 in dothan the company had 70 000 square feet 6 500 m2 of space in the porter square mall . 27 later in its life the company s headquarters were in wilsonville oregon . 28 in 2005 movie gallery bought hollywood video gaining hollywood s office space in oregon . 26 movie gallery operated its oregon office out of the space 29 and hollywood video now a subsidiary of movie gallery maintained its headquarters in wilsonville . 30 in 2007 movie gallery filed for chapter 11 bankruptcy protection . in 2008 when the company emerged from chapter 11 its new upper management had no ties whatsoever to dothan alabama . 27 joe malugen the founder of movie gallery was no longer the ceo ; instead c. j. gabriel an idaho resident was named the ceo . because of this jim cook of the enterprise ledger said there may be little motivation for keeping the home office in dothan . 26 in 2008 the headquarters moved to wilsonville . the former porter square mall space went up for lease or sale . movie gallery kept some central employees in dothan and the company said that it would continue to have a presence in dothan . 27 wendy culverwell of the portland business journal said that the headquarters move decision was unusual because most of hollywood entertainment s decision making authority went to alabama after the sale to movie gallery in 2005 . 29 after the company filed for chapter 7 great american group inc. held an auction on tuesday august 17 2010 at the wilsonville oregon headquarters of movie gallery auctioning away the company s equipment . 31 see also edit veterans memorial stadium formerly movie gallery stadium oregon portal alabama portal film portal companies portal references edit miller brian k. listed industrial space in area is now plentiful . portland business journal . friday october 16 1998 . retrieved on september 26 2010 . a b c spector mike ; lattman peter may 3 2010 . hollywood video chain owner movie gallery to close remaining u.s. stores . wall street journal . retrieved 2010 05 04 . blockbuster boost movie gallery goes dark . thestreet.com . may 4 2010 . retrieved 2010 05 04 . mcmillan dan . http portland.bizjournals.com portland stories 2005 05 16 focus5.html hollywood ends run as locally based company . portland business journal . friday may 13 2005 . 1 . retrieved on september 26 2010 . a b halkias maria . movie gallery closing stores which is bittersweet news for blockbuster . the dallas morning news . tuesday may 4 2010 . retrieved on september 25 2010 . movie gallery inc home michael felberbaum 2010 05 10 . no. 2 rental chain hollywood video to close . msnbc . retrieved 2010 05 10 . press releases dead link a b troubled movie gallery is closing 520 stores . portland business