Toronto Star /Movie Gallery closes 131 video rental stores in Canada

June 14, 2010

SUMMARY

 

Movie Gallery Canada, a chain of video rental stores serving mainly small towns, will be closing 131 stores in Canada, including its VHQ stores in Quebec, starting Saturday.

 

The company blamed stiff competition from cable TV providers, the Internet, video rental kiosks and mail-order video services.

 

“It’s interesting because that classification of merchandise is becoming obsolete,” said Jim Schaye, chief executive officer of Hudson Capital Partners, one of three partners managing the liquidation sale.

 

The closings affect 28 stores in Ontario, including some near the Greater Toronto Area and popular tourist towns, such as Acton, Grand Bend, Port Hope and Parry Sound.

 

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