Auction of Hollywood Video stores to be held in New York City

New York /
Feb.February 07, 2008 10:18 AM

More than 300 movie rental stores, including a Hollywood Video store in Brooklyn, will be on the block at a New York City bankruptcy auction next month.

Hollywood Video’s parent company, Movie Gallery, is selling assignments of leases at the March 7 auction. The 327 stores include a Park Slope store as well as 17 fee-owned properties.
 
Movie Gallery is closing “underperforming and unprofitable” video stores, a company press release said. A Movie Gallery spokesperson, who asked not to be named, said the closures are being done “in an effort to continue to position the company to re-emerge from bankruptcy.”
 
In Brooklyn, the lease for sale is at a 4,440-square-foot Hollywood Video store at 420 Fifth Avenue. The rent is $29 per square foot and the lease expires Feb. 11, 2010, with two five-year options.
 
Another 11 stores are subject to closure in upstate New York and Long Island, including stores in Oneonta, Massapequa and Port Jefferson Station. In total, the retail leases up for grabs span 44 states and the District of Columbia.
 
The auction follows Movie Gallery’s October auction of another 530 locations, said Matthew Bordwin, managing director and co-group head at Keen Consultants, which will hold the auction.
 
While the sites were not fruitful for Movie Gallery, Bordwin assured that they would be good locations for other retailers. He would not reveal the starting prices prior to the auction.
 
Auction buyers would pick up the existing rent at the stores, and pay the debtor cash up front. The cash is what’s subject to bidding, Bordwin said.
 
Movie Gallery is a home entertainment specialty retailer with 3,890 stores in all 50 states and Canada under the brands Movie Gallery, Hollywood Video and Game Crazy. After acquiring Hollywood Video in April 2005, Movie Gallery had 4,700 stores, the company Web site says.
 
Bordwin said the auction location has yet to be determined, but it will be in the city. Bidders have a March 4 deadline.
 
If Movie Gallery fails to sell the leases at auction, they will be returned to the landlords, subject to a capped fee.
 


Related Articles

arrow_forward_ios
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
Matt Lauer exposes Hamptons estate to the market
 Fredrik Eklund and the property (Getty, Steve Frankel)
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Fredrik Eklund lists Bel Air mansion for rent as family moves to “forever home”
Gordon Ramsey and his Lucky Cat restaurant (Lucky Cat)
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Gordon Ramsay to open first South Florida restaurant in Miami Beach
Jill Stuart and 113 Parsonage Lane (Getty, Google Maps)
Famous fashion designer sews up Sagaponack sale
Famous fashion designer sews up Sagaponack sale
Hiten Samtani
Watch: CoStar makes its biggest resi Move yet
Watch: CoStar makes its biggest resi Move yet
Coxsackie mayor Mark Evans (Village of Coxsackie, Getty)
Another Hudson Valley village halts short-term rentals
Another Hudson Valley village halts short-term rentals
From left: Starwood Capital’s Barry Sternlicht and Veracity Development’s Edmond Li along with 111 Mercer Street (Getty, Google Maps, Veracity Development)
Sternlicht’s LNR aims to foreclose on Veracity’s Soho condo
Sternlicht’s LNR aims to foreclose on Veracity’s Soho condo
(Illustration by Kevin Cifuentes for The Real Deal with Getty Images, James Gagliardi of Modern Media)
PHOTOS: Brown Harris Stevens turns 150
PHOTOS: Brown Harris Stevens turns 150
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...