One of the two Hollywood Video stores in Carson City will close after its parent company declared Chapter 11 bankruptcy on Monday.
Movie Gallery Inc., which owns Hollywood Video and Game Crazy stores, will close about 760 stores under the restructuring, the second through bankruptcy court since 2007, the company said in a statement.
In Carson City, the store at 444 E. William St. will close. The stores at 4326 S. Carson St. and on Pine Cone Road in Dayton will remain open. Two locations in Reno will close.
No date was given for the planned closures.
An employee at the Carson City store said the process should take about four to eight weeks as the company begins to liquidate merchandise.
After the closures, the company will have 1,906 stores operating in the country, including 1,111 Movie Gallery, 545 Hollywood Video and 250 Game Crazy locations.
Movie Gallery, the second largest video rental retailer in the United States, is struggling with competition from Netflix Inc.'s mail delivery service and Redbox's $1-per-night kiosk rentals.
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