Struggling movie rental chain Movie Gallery has announced that it will be closing 160 more stores by the end of this month, bringing the total number of shuttered shops to more than 1000 since the troubled chain first announced the elimination of 520 stores last September followed by 400 more in February (see "Another 400 Video Stores to Close").  The nation's number 2 video rental chain, Movie Gallery, which operates stores under the Movie Gallery, Hollywood Video and Game Crazy brands, filed for Chapter 11 bankruptcy protection last October (see "Movie Gallery Files Chapter 11").

The closings, which complete the chain's restructuring program, will bring the number of Movie Gallery locations to just under 3,500.  The chain hopes to emerge from bankruptcy in the second quarter, but with continuing competition from online renters such as Netflix, the DVD rental business remains in the doldrums, and even the newly streamlined Movie Gallery chain will have to face a very competitive rental environment.