Dothan, Ala. In a Monday vote, Movie Gallery creditors overwhelmingly approved a bankruptcy reorganization plan. The approval of the plan serves as a major step toward allowing the retailer to successfully emerge from Chapter 11 protection during the second quarter of this year.
Ninety percent of the 1,500 creditors voted in favor of the plan, which will restructure the finances of Movie Gallery.
A confirmation hearing, to be held in the U.S. Bankruptcy Court in Richmond, Va., is slated for Wednesday.
“Through our ongoing restructuring we have positioned Movie Gallery and Hollywood Video as stronger businesses, better equipped for long-term success," Movie Gallery CEO Joe Malugen said.