Movie Gallery Canada is Now Liquidating Merchandise in All of Its 181 Stores in Canada
TORONTO–Movie Gallery Canada, Inc. (the “Company”) has operated 181 stores under the “Movie Gallery” and “VHQ” banners in all provinces in Canada, with the exception of Quebec. The Company today announces that it will be liquidating inventory and other assets at all of its Movie Gallery and VHQ stores over the next six to eight weeks (the “Sale”). All of its stores are scheduled to close on or before July 31, 2010, with the exact timing of individual store closures to be determined on a store-by-store basis. A list of the closing stores is attached below.
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.
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.
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 $33,000,000.
On June 11th, the Company received offers from parties to acquire some of its remaining 50 stores, including inventory and assets therein. All such offers have been declined, and the Company has now decided to liquidate all 181 of its Canadian stores through its agreement with the Agent. The remaining 50 stores are to be added to the liquidation this week with an additional $15,000,000 of inventory and other assets for sale at significant discounts, including DVD and Blu Ray movies, video games and store fixtures.
“Consumer response to the initial liquidation sale has been excellent,” said David Peress, President of Hudson Capital Partners. “Customers are taking 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. New product is arriving daily from Movie Gallery’s Canadian warehouse. All Company gift cards will continue to be honored during the Sale.”
Management, in concert with its advisors and Farber, intends to work as expeditiously as possible to maximize the outcome for the benefit of all stakeholders.
More information about the NOI process can be obtained by visiting Farber’s website at www.farberfinancial.com and clicking on the Movie Gallery Canada, Inc. link under Current Engagements.
About Farber Financial Group
Farber Financial Group (www.farberfinancial.com) provides specialty financial services for rescuing, refinancing and rebuilding businesses, including: corporate insolvency and restructuring, forensic accounting, fraud investigations, distressed financial advisory services, corporate finance, mergers & acquisitions, business strategy & valuations, turnarounds, CFO interim management and opportunity assessments. Farber is based in Toronto, Canada and is internationally a member of Begbies Global Network (www.begbiesgn.com).
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, we have managed more store closings than any other business in the industry and have provided inventory appraisals on behalf of a wide range of industries and merchants. Our focus is to help retailers, asset-based lenders and other financial institutions understand the underlying value of inventory and to provide key monitoring advice. To learn more about Tiger Capital Group, please visit www.tigercapitalgroup.com.
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. To learn more about Hudson Capital Partners, please visit www.hudsoncpl.com.
Movie Gallery and VHQ Store Locations in Canada
Street Address City Province
88 Howarth Street Red Deer AB
69 Dunlop Street Red Deer AB
266 4th Street Sw Medicine Hat AB
2034 19th Avenue Didsbury AB
5015 51st Avenue Eckville AB
104 2nd Avenue East Hanna AB
2-4601 50th Avenue Olds AB
80 Hewlett Park Landing Sylvan Lake AB
4921 50th Street Wetaskiwin AB
2347 & 2349 Rabbit Hill Rd. Edmonton AB
103-11030 100th Street Grande Prairie AB
106 Park Street Hinton AB
#4800 Hwy 2a Ponoka AB
717 20th Street Ne Medicine Hat AB
6608 48th Avenue Camrose AB
5104 50th Avenue Cold Lake AB
83 Carry Drive Medicine Hat AB
5541 60th Street Vegreville AB
202 Main Street, Sw Slave Lake AB
5007 47th Avenue Taber AB
166 Columbia Blvd West Lethbridge AB
838 Main Street Pincher Creek AB
2300 Pine Plaza Grande Cache AB
17 Athabasca Avenue Devon AB
555 Main Street Cardston AB
11001 20th Avenue Blairmore AB
4325 50th Avenue St Paul AB
#100-4300 South Park Drive Stony Plain AB
100-1040 Railway Avenue Canmore AB
5004 Dahl Dr. Whitecourt AB
110-800 Pine Road Strathmore AB
109-110, 10011 92nd St Grande Prairie AB
8802 100th St. Unit 17 Morinville AB
18352 Lessard Road Edmonton AB
102-9505 68th Avenue Grand Prairie AB
10004 Rainbow Blvd. High Level AB
3760 56th Street Wetaskiwin AB
5101 Broadway Ave. Blackfalds AB
Bay 4, 6842-50th Ave Red Deer AB
4819-50th Avenue White Court AB
3708-50th Avenue Lloydminster AB
9902-93rd. Street Fort Saskatchewan AB
3121-49th Ave Red Deer AB
1-312 Cassils Road West Brooks AB
400-650 South Railway Ave. E Drumheller AB
#6, 4502-50th Street Ponoka AB
#002, 4302-50th Street Leduc AB
1066-11300 Tuscany Blvd. N.W. Calgary AB
101 Centre Street North Sundre AB
3566 Garrison Gate S.W. Calgary AB
6490 Old Banff Road S.W. Calgary AB
4923 47th Avenue Innisfail AB
9804 100th Street Peace River AB
4905 46th Street Bonnyville AB
10200 - 100th Street Westlock AB
4905-50th Avenue Barrhead AB
1111 10th Street Wainwright AB
1915 20th Avenue Coaldale AB
Bay 101 5003 30th Ave Beaumont AB
4700 - 53rd Avenue High Prairie AB
8701 94th Street Fort Saskatchewan AB
5105-50th Street Drayton Valley AB
5040-50th Avenue Rocky Mountain House AB
5030 Highway 2a Lacombe AB
5028 50th Avenue Vermilion AB
330 45th Street, Unit 108 Edson AB
5500 Sunshine Coast Hwy #310 Sechelt BC
5301 - 25th Avenue Vernon BC
1-619 Vernon Street Nelson BC
9831-98a Avenue Fort St John BC
5101 South Access Road Chetwynd BC
470 Stuart Drive W Unit 7 Fort St James BC
1280 Cedar Avenue Trail BC
B5-465 Merecroft Rd Campbell River BC
1800 Tranquille Road Kamloops BC
651 Main Street Lillooet BC
1-136 Tapton Avenue Princeton BC
3-192 West Island Highway Parksville BC
575 Old Hope Princeton Way Hope BC
9522 Main Street Winfield BC
665 Newman Road Quesnel BC
13-600 Mackenzie Blvd Mackenzie BC
4-4569 10th Avenue New Hazelton BC
2315 Beacon Ave. Victoria BC
845 Deloume Road Mill Bay BC
6638-6660 Sooke Road Sooke BC
2225 Guthrie Road Comox BC
2741 Forksdale Ave. Merritt BC
3350 10th Street Houston BC
460 - 5240 Domano Blvd Prince George BC
155 Malcolm Drive Quesnel BC
503 Hwy 16 Burns Lake BC
140-630 17th Street Castlegar BC
370 Proctor Street Williams Lake BC
1040 Alaska Avenue Dawson Creek BC
8950 Granville Street Port Hardy BC
145-149a City Centre Mall Kitimat BC
4296-D Joyce Avenue Powell River BC
101-1st Avenue East Prince Rupert BC
1323 Main Street Smithers BC
4730 Keith Road Terrace BC
112 1st Street West Vanderhoof BC
561 Highway 3 Fernie BC
5211 Airport Drive Fort Nelson BC
103-Highway 97 North 100 Mile House BC
240 Main Street Selkirk MB
886 Thornhill Street Morden MB
211 Saskatchewan Avenue West Portage La Prairie MB
35 Main Street Flin Flon MB
380 Hazelwood The Pas MB
247 Main St Steinbach MB
138 Main Street #11 Sussex NB
337 Connell Street Woodstock NB
210 King St St Stephens NB
15 A Du Vestiaire Street Shediac NB
Sq. Mall - Columbus Drive Carbonear NL
76 Manitoba Drive Clarenville NL
42 Queen Street Stephenville NL
16 Murphy Square Corner Brook NL
1 Mt. Bernard Ave Corner Brook NL
3-153 Reserve Street Glace Bay NS
3737 Highway 3 Crowell NS
47 Paint Street #6 Port Hawkesbury NS
1016 Central Avenue Greenwood NS
31 Weaver Street Pictou NS
3290 Hwy 2 Fall River NS
86 Starrs Road Yarmouth NS
#100, 314 Old Airport Rd. South Yellowknife NT
351 Scott Street Fort Frances ON
105 Peter Street Port Hope ON
29 Mission Rd Wawa ON
10 Superior Plaza Marathon ON
63 Main Street Grand Bend ON
313 Main Street East Kingsville ON
450 Garrison Road Fort Erie ON
281 Goodrich Street Port Elgin ON
372 Queen St. East Acton ON
12 Caradoc Street North Strathroy ON
120 Thames Street North Ingersoll ON
35 Sandwich Street South Amherstburg ON
159 Main Street East Grimsby ON
3 Arthur Street Arnprior ON
140 Queen Street Lakefield ON
97 Picton Main Street Picton ON
627 Fortington Street S. Renfrew ON
802 Main Street East Shelburne ON
3080 Highway 69 North Val Caron ON
220 Main Street North Exeter ON
316 Talbot St. North Essex ON
30 Queen Street South Tilbury ON
2135 Dorchester Road Dorchester ON
1 Pine Drive Parry Sound ON
9-206497 Highway 26 Meaford ON
825 10th Street Hanover ON
7 Commerce Road Angus ON
4610 Ontario Street Beamsville ON
4-60 Brunetville Road Kapuskasing ON
771 Pembroke St. East Pembroke ON
39 Chamber St Smith Falls ON
65 Van Horne Avenue Dryden ON
5 Chipman Street Kenora ON
141 Hastings St N Bancroft ON
229 Whitewood Avenue New Liskeard ON
341 Notre Dame Street Belle River ON
33 Wilson St Perth ON
800 Centre Street Espanola ON
98 La Fleche Blvd Unit 2 Casselman ON
1011 Victoria Street Petawawa ON
505 Granville St Summerside PE
1112 6th Avenue, Ne Swift Current SK
1591 100 Street North Battleford SK
506-508 Main Street Melfort SK
1200 8th St West Nipawin SK
815 Gray Avenue Saskatoon SK
503 La Ronge Avenue La Ronge SK
85 Government Rd. N.W. Weyburn SK
1310 7th St. Estevan SK
517 Main St. Kindersley SK
114 9th St. West Meadow Lake SK
1307a 8th Ave Humboldt SK
520 Central St. W. Warman SK
