Movie Gallery expands discounts in liquidation sale
Posted Jul 22, 2010 By EMC News
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EMC Business - Movie Gallery Canada, Inc. (the "Company") announced recently that as part of its liquidation sale, the majority of its inventory is now being discounted at prices 50 per cent off and greater! 
Chris Must, Perth EMC
Lois Worthen has signed on as a platinum sponsor for the sixth annual Golf for the Memories tournament in support of the Alzheimer Society of Lanark County, coming up Aug. 16. From left are donor Lois Worthen and society board president JoAnn Campbell.
Customers buying more than one movie will receive additional deeper discounts, with some over 60 per cent.
Customers can take advantage of tremendous bargains on a great selection of movies, videos and games available for purchase at all Movie Gallery and VHQ stores throughout Canada including its eastern Ontario operations in Smiths Falls, Perth, Arnprior and Renfrew. New product is arriving daily from Movie Gallery's Canadian warehouse. All Company gift cards will continue to be honoured during the sale.
Commenting on the Movie Gallery Canada liquidation sale, David Peress, president of Hudson Capital Partners said, "Consumer response to the sale has been very strong. The inventory has been going fast, but there is still a good selection of current and classic titles available. At these prices, which have been reduced even further, consumers will need to act fast, as we expect merchandise to move quickly."
Upon completion of the sale, all 181 Movie Gallery Canada stores are scheduled to close as soon as July 31 with the exact timing of individual store closures to be determined on a store-by-store basis.
Back on June 16, 2010, the company announced that it would be liquidating inventory and other assets at all of its Movie Gallery and VHQ stores over the next six to eight weeks (the "Sale").
Due to growing challenges in their markets, and other business concerns, the Company elected to file a Notice of Intention to Make a Proposal ("NOI") pursuant to the Bankruptcy and Insolvency Act ("BIA") on May 7, 2010. Under the NOI, A. Farber & Partners Inc. ("Farber"), a member of Farber Financial Group, was appointed as Trustee in the Proposal, and has been assisting the company in this process.
According to a press release, the company is not bankrupt and intends to file a proposal to its creditors, including landlords and employees, in the near future. The company's share of the net proceeds of the sale will be used to fund this proposal to its creditors. In the meantime, the effect of the NOI and the Order of Ontario Superior Court of Justice dated June 11, 2010 is to provide an overriding stay of proceedings affecting all creditors until July 21, 2010, or thereafter if extended by the court. The company continues to occupy its leased premises, and to employ the majority of its valued 1,200 employees, the release notes.
A joint venture group consisting of: Schottenstein Bernstein Corporation, Tiger Capital Group, and Hudson Capital Partners (the "Agent") was selected by the Company to conduct the liquidation sale of the Company's assets, comprising inventory and furniture, fixtures and equipment. This arrangement was approved by the Superior Court of Justice by Order of the Honourable Mr. Justice Campbell on June 11, 2010. The sale in 131 of the 181 store locations was commenced by the agent on June 12, 2010 pursuant to that order, affecting inventory valued at approximately $33 million. That has since been expanded to include all 181 stores.
ABOUT SCHOTTENSTEIN BERNSTEIN CORPORATION
SB Capital Group, a Schottenstein affiliate, is a leader in the field of asset recovery, rescue finance, restructurings and store closing/event sales. With a portfolio of businesses and investments across a wide area of sectors including retail, consumer products, franchising, licensing and real property, SB Capital Group's specialties include asset disposition services, acquisitions, financial solutions, as well as appraisal and valuation services. Please visit www.sbcapitalgroup.com to discover the many ways SB Capital Group helps businesses successfully manage change.
ABOUT TIGER CAPITAL GROUP
Tiger and affiliated companies provide comprehensive advisory, valuation, auction, management, and disposition services for a broad range of retail, wholesale, and industrial companies. Over the past 30 years, it has managed more store closings than any other business in the industry and has provided inventory appraisals on behalf of a wide range of industries and merchants. Its focus is to help retailers, asset-based lenders and other financial institutions understand the underlying value of inventory and to provide key monitoring advice.
ABOUT HUDSON CAPITAL PARTNERS, LLC
Hudson Capital Partners, LLC offers an extensive array of professional solutions to the challenges retailers face today, including management of excess, obsolete and discontinued inventory, changing geographic and demographic circumstances, unproductive store sites, and real estate and liquidity issues. The firm's diversified staff is experienced at performing strategic store closings and relocations, fixed asset dispositions, wholesale inventory buyouts and lease mitigations. Through its advisory arm, HCP Asset Advisors, the firm provides appraisals and asset advisory services.
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