A video store chain is closing its doors in the Rio Grande Valley.
Movie Gallery, Inc. filed for Chapter 11 bankruptcy back in February.
The company owns Movie Gallery, Hollywood Video and Game Crazy rental stores across the United States and Canada.
Hollywood Video has five video stores in Brownsville, Harlingen, Weslaco and McAllen.
Action 4 News has confirmed that all five Valley stores and a sixth one in Kingsville are closing their doors within the next few weeks.
According to the Hollywood Video website, the company is closing stores across the United States that were not profitable.
Movie Gallery, Inc. reports that funds raised through the liquidation of the stores will help the company move forward.
According to BIZJOURNALS.COM, the company initially closed 760 stores back in February but later decided to close its remaining 1,900 stores.
The Valley stores have already stopped receiving new release movies and will soon start selling their DVDs and video games instead of renting them.
The liquidation sale is expected to start within the next two weeks.
The company’s bankruptcy filing comes amid increased competition in the movie rental business from such outlets as Netflix, iTunes and RedBox.
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