The brick-and-mortar DVD rental business took on more water Wednesday, with Movie Gallery Inc., the No. 2 operator behind Blockbuster, filing for Chapter 11 bankruptcy protection for the second time since 2007.
In its filing, the privately owned Wilsonville, Ore-based chain reported that its revenue cratered in 2009 to $1.4 billion from $2 billion in 2008, and that its operating losses in the fourth quarter had swelled 52 percent to $129 million.
Movie Gallery owes more than $540 million to lenders and is behind or in default on loan payments.
As part of its restructuring, the chain said it would close 760 of its 2,400 locations.