A Kilmarnock, Va., Movie Gallery store that had been indicted by a grand jury on public nuisance charges last November has removed adult-themed videos from its stock.
Movie rental giant Movie Gallery announced plans last week to shutter 400 of its stores. The forthcoming closures are additional to the 520 locations the chain shut down last fall.
A grand jury has indicted video rental giant Movie Gallery as a public nuisance for selling adult videos and displaying R-rated and unrated videos with "obscene" boxcovers in a local store's main shopping area.
Video rental giant Movie Gallery plans to file for Chapter 11 bankruptcy protection this month and looks ahead to restructure its finances in a pre-negotiated deal with key creditors.
The second-largest movie and game rental company in the U.S. might have to declare bankruptcy. Movie Gallery failed to meet its second-quarter projections and thus was unable to fulfill the obligations of its debt.
Lawyers for two Movie Gallery clerks petitioned a Spartanburg County Court at a preliminary hearing to dismiss felony obscenity charges against their clients, but the court denied the request, ruling that there is sufficient probable cause to convene a grand jury, which will determine whether to indict the clerks.
