Joystiq

GameCrazy store liquidation starts today, everything 20% off

Ben Gilbert — Fri, 21 May 2010 12:00:00 EST

Moving right according to schedule, GameCrazy today officially began liquidating outlets across the US, with remaining inventory in stores reduced in price by 20 percent. An internal memo we received details the liquidation proceedings, confirmed by multiple calls to remaining GameCrazy outlets across the East Coast. "Beginning May 21, your store will introduce a special sales strategy featuring 20% OFF sale on all software and hardware items," reads this particular store's notification.

Apparently "The Great American Group" -- an auction, liquidation, and appraisal contractor -- will be handling oversight of the liquidation, advertising as much on its website (as well as being mentioned repeatedly in the notice we received). It also appears that the group has yet to finalize an incentive plan for remaining employees, though the document assures that they'll hear something "next week." A list of remaining Movie Gallery, Inc. outlets, including many GameCrazys, can be found here (warning: PDF link).

GameCrazy store liquidation starts today, everything 20% off originally appeared on Joystiq on Fri, 21 May 2010 12:00:00 EST. Please see our terms for use of feeds.

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GameCrazy internal document confirms liquidation of remaining stores

Ben Gilbert — Wed, 05 May 2010 09:30:00 EST

click to enlarge
Movie Gallery Inc., owner of the GameCrazy, Hollywood Video, and Movie Gallery franchises, is officially closing its remaining 2,415 outlets across the US. An internal memorandum obtained by Joystiq confirms reports that the company will be closing its doors and liquidating its remaining stock over the coming weeks. "A decision has been reached by the board of directors to liquidate the entire assets of the organization," the document reads.

The piece also notes that the store closing sale will "likely continue for up to 60 days" and that employees who stick it out to the end will receive "store associate incentive plans" as a reward. Additionally, it assures said employees that "The company expects to continue to pay associates and provide current benefits and insurance programs during your active employment until you are released from the store or the store closing sale ends."

It would appear that discount levels and liquidation plans have yet to be finalized at the company. "We are also in the process of evaluating liquidation vendors who will oversee the store closure and sale process in conjunction with our company ... the consultants will advise us on appropriate discount levels, advertising, in-store signing and in-store merchandising in order to facilitate a smooth process." And though it's not explicitly spelled out, the piece states that "most" normal operating procedures and company policies will persist through the closings.

We wish the best of luck to the approximately 19,000 employees affected by the closure.

GameCrazy internal document confirms liquidation of remaining stores originally appeared on Joystiq on Wed, 05 May 2010 09:30:00 EST. Please see our terms for use of feeds.

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WSJ: GameCrazy officially shuttered in US alongside Hollywood Video

Ben Gilbert — Mon, 03 May 2010 15:30:00 EST

GameCrazy's parent company Movie Gallery Inc. is said to be shuttering the approximately 250 remaining GC stores across the United States, alongside 2,165 Movie Gallery and Hollywood Video outlets. Roughly 19,000 people are estimated to be out of work due to the closures, according to a Wall Street Journal report, and the company is said to be filing for Chapter 7 bankruptcy.

People "familiar with the matter" told the WSJ that the chain considered "reorganizing around smaller core stores" before filing for bankruptcy, but the idea "never got any traction." It also appears that the 184 or so Canadian outlets will remain unaffected, but we've heard nothing official yet. Reportedly, the US stores will begin liquidation "over the next couple of months" until inventories run dry, mirroring the murmurs we heard this past weekend.

While the reality that GameCrazy is suffering this fate certainly appears likely (our tips box seems to corroborate the information), we should note that Movie Gallery Inc. has yet to issue any formal statement regarding the allegations. Our calls to GameCrazy corporate have similarly gone unanswered. If you are a GameCrazy, Hollywood Video, or Movie Gallery employee with any form of official documentation on this subject, we'd love to hear from you.

[Via GameSpot]

WSJ: GameCrazy officially shuttered in US alongside Hollywood Video originally appeared on Joystiq on Mon, 03 May 2010 15:30:00 EST. Please see our terms for use of feeds.

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Rumor: GameCrazy closing all remaining stores

Ben Gilbert — Sat, 01 May 2010 15:00:00 EST

[Effluent Suburbia]

After a handful of reports from several current GameCrazy employees and about a dozen calls to GameCrazy outlets across the country, we believe that the retailer will in fact be shuttering its remaining 250 or so locations in the coming weeks. Speaking with one such GC employee in central Pennsylvania, we were told, "Movie Gallery as a whole [GameCrazy's parent company] yesterday filed for Chapter 7, which indicates that the whole company is going through liquidation. I was in on the conference call yesterday ... it looks like this week and the week after they're going to go through finding a liquidation company to buy [the remaining products]. It's going to be business as usual for the next two weeks, we'll see our releases for the next two weeks, but we'll likely be closed by the end of June."

The alleged bankruptcy filing has yet to appear on Movie Gallery's stock page or in the SEC database. We've attempted to gain official word from corporate, but the company refuses to acknowledge whether the chain is closing. Whether there was any internal documentation, one employee told us, "Unfortunately, there aren't any new memos on the intranet related to it... the last one was on 4-21 ("Important Closing Store Update"), and then there were a few on 4-20 ("Select In-Store Programs Cease" and "Letter from Roger Dunlap - Closing Store Announcement") and one on 4-19 ("Special Order Games Department Closing") The newest stuff was on the conference call yesterday, which I wasn't apart of."

That said, our past experience with GameCrazy has shown that when several employees tell identical stories about store closures across multiple states, they're not likely colluding on an elaborate ruse. Additionally, we were told by an employee that "after the 18th [of May], we're done with pre-orders." He also encouraged customers with pre-orders to come in and pick up any deposits they've placed on games being released any time beyond the immediate future. If you're a current GameCrazy employee with information you'd like to share, we'd love to hear from you.

[Thanks to everyone who sent this in!]

Rumor: GameCrazy closing all remaining stores originally appeared on Joystiq on Sat, 01 May 2010 15:00:00 EST. Please see our terms for use of feeds.

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Game Crazy parent files for bankruptcy, 250 stores to remain

Alexander Sliwinski — Wed, 03 Feb 2010 19:20:00 EST

Game Crazy can't catch a break as parent-company Movie Gallery has filed for chapter 11 bankruptcy. When the dust settles, only 250 Game Crazy locations will remain. The company already closed over 200 locations late last year. In total, Movie Gallery plans to immediately liquidate and close 760 stores in its financially fallible trinity of brands: Movie Gallery, Hollywood Video and Game Crazy.

The company hopes to emerge from the "restructuring" with a "new and sustainable business model centered on a smaller base of profitable stores." The only division of the business unaffected by the bankruptcy is the company's Canadian operations. At least that's one good thing, eh?

[Via Industry Gamers]

Game Crazy parent files for bankruptcy, 250 stores to remain originally appeared on Joystiq on Wed, 03 Feb 2010 19:20:00 EST. Please see our terms for use of feeds.

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