Movie Gallery Inc., owner of the Hollywood Video movie rental chain, has filed for Chapter 11 protection and plans to close 805 stores — about a third of its total.
Its the second trip through bankruptcy court since 2007 for Movie Gallery. The company is struggling with competition from Netflix Inc.'s mail delivery service and Redbox's $1-per-night kiosk rentals.
It has closed more than 2,400 of its stores in the past three years. Court filings Tuesday indicated it has about 2,600 outlets now.
It says the company continued to see "significant" losses in 2009.
Annual revenue fell $546.3 million, or 28 percent, to $1.4 billion.
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