On a related topic ...
I just noticed this bit of news released today ...
Monday May 17, 3:35 pm Eastern Time
Company Press Release
Movie Gallery Completes Purchase of 88 Video
Specialty Stores From BlowOut Entertainment, Inc.
Stores Purchased Include 79 Outlets in Wal-Mart
DOTHAN, Ala.--(BUSINESS WIRE)--May 17, 1999--Movie Gallery, Inc. (Nasdaq/NM: MOVI - news) today announced
the consummation of its previously announced purchase of the assets of 88 video specialty stores from BlowOut Entertainment,
Inc. Movie Gallery will continue to operate these stores within the stores of mass merchant retailers and supermarket chains.
These stores, which include 79 outlets located in the stores of Wal-Mart Stores, Inc., produced aggregate revenues of
approximately $16 million in 1998.
J. T. Malugen, Chairman and Chief Executive Officer of Movie Gallery, commented, ''We believe this purchase represents a
substantial opportunity for Movie Gallery. We are confident that through our expertise in running stores that are small by
industry standards and through our growing copy-depth initiatives, we will more fully leverage the outstanding retail traffic
generated by the host retail store. We are also very pleased with transition efforts thus far. These stores will begin receiving
substantially larger amounts of inventory immediately and, within approximately eight weeks, all stores will be up and running on
Movie Gallery systems.''
To take advantage of the ''safe harbor'' provisions of the Private Securities Litigation Reform Act of 1995, you are hereby
cautioned that this release contains forward-looking statements that are based upon current expectations and involve a number
of risks and uncertainties. These risk factors include the Company's ability to profitably operate stores smaller than the
Company's typical unit; the ability of the Company to drive incremental customer traffic in these stores; and the risk factors that
are discussed from time to time in the Company's SEC reports, including, but not limited to, the report on Form 10-K for the
fiscal year ended January 3, 1999.
Movie Gallery currently owns and operates a total of 910 video specialty stores and has 94 licensees located in 29 states. The
Company is among the three largest video specialty retailers in the United States and is the leading provider of video and video
game rental and sales in rural and secondary markets in the United States.
Contact:
Movie Gallery Inc., Dothan
J. Steven Roy, 334/677-2108
Now let's see ... 88 more stores added to the Movie Gallery chain, that would be a nice chunk of change if we can get movie gallery on board after the pilot program.
I CAN SEE THE HEADLINES NOW :o) <g>
"OSFT KIOSK'S A HUGE HIT WITH WAL-MART CUSTOMERS. FAMED CHAIN TO INCORPORATE KIOSK'S INTO EVERYDAY SHOPPING NEEDS!"
Disclaimer: The above headline is just a dramatization. Any resemblence to an actual future headline is purely coincidental ;o) |
