Hollywood Video
 |
|
| Industry | Retail |
|---|---|
| Fate | Bankruptcy |
| Founded | 1988 |
| Defunct | 2010 |
| Headquarters | Wilsonville, Oregon |
| Products | DVD, Blu-ray, and video game rentals and sales |
| Parent | Movie Gallery |
| Subsidiaries | Hollywood Entertainment, GameCrazy |
Hollywood Entertainment Corporation (Nasdaq: HLYW),[1] known as Hollywood Video, was a VHS, DVD, and video game rental shop company started in 1988. The chain was the largest direct competitor to Blockbuster Video until it was purchased by Movie Gallery in 2005.[2]
Movie Gallery (and therefore Hollywood Video) declared Chapter 7 bankruptcy in May 2010 announcing an end of corporate operations and a liquidation of all assets.[3]
Contents |
[edit] History
In 1993 Hollywood, which operated 16 stores, became a public company. In 1996 Hollywood decided to establish three regional offices, with one each in Greater Chicago, Greater Houston, and the San Francisco Bay Area.[4]
[edit] Purchase of Hollywood Video
Hollywood Video was the target of a hostile takeover attempt, initially announced at the end of December 2004 by competitor Blockbuster Video. In February 2005, Blockbuster announced an exchange offer of $14.50 per share ($11.50 cash and $3.00 in Blockbuster shares).
In order to create a stronger position against the hostile takeover, Hollywood Video agreed to a buyout on Monday, January 10, 2005 by its smaller competitor Movie Gallery. Movie Gallery paid $860 million, $13.25 per share, and the assumption of $380 million in debt. Stocks closed at $13.85 on January 10 after this news. Blockbuster then dropped its purchase plans, citing anti-trust concerns. Movie Gallery completed its purchase of Hollywood Video on April 27, 2005.[citation needed]
Hollywood became a subsidiary of Movie Gallery and maintained its Oregon headquarters.[5]
[edit] Headquarters
At one time Hollywood Video was headquartered in Beaverton, Oregon, in an 85,000-square-foot (7,900 m2) office building. In 1994 Hollywood moved its employees out of the building one year into its five-year lease. Hollywood continued paying rent to James Berrey, the Beaverton building's owner. In 1996 Poorman-Douglas Corp agreed to occupy all of the space in the Beaverton building, relieving Hollywood of extra rent payments.[6]
After Hollywood decided to leave Beaverton, it signed a long-term lease for a 166,000 square feet (15,400 m2) building in Wilsonville, Oregon. Robert Goldfield of the Portland Business Journal said that Hollywood Video "barely" took occupancy of the structure; then Mark Wattles, the chief executive, decided to move the offices and the Hollywood Video headquarters to the former Smith's Home Furnishings headquarters in Wilsonville.[6] In 1996 170 full-time employees worked from the headquarters.[4] The 173,000 square feet (16,100 m2) Smith's headquarters facility was no longer occupied by October 1998; as of that month the space was for lease. Hollywood's Nasdaq trading became no longer active.[1]
In 1997, when Hollywood was considering a new headquarters location, the City of Wilsonville had signage codes that did not allow companies to use neon. The codes made Hollywood consider using other locations. Members of the City of Wilsonville's development review boards said that neon was out of character for the Wilsonville Business Park, Hollywood Video's prospective location.[7]
In January 1999 Trammell Crow Co. bought the 77 acres (31 ha) Thrifty Payless Inc. headquarters for $25.5 million and then broke the compound into sections, selling pieces of it for a total of $22 million; Trammell Crow retained control of the $8 million, 120,000-square-foot (11,000 m2) headquarters building. Hollywood leased the headquarters building,[8] and Hollywood remained headquartered in Wilsonville.[9]
When Movie Gallery bought Hollywood, Hollywood became a subsidiary of Movie Gallery and was headquartered out of the same Oregon offices.[10]
[edit] References
- ^ a b Miller, Brian K. "Listed industrial space in area is now plentiful." Portland Business Journal. Friday October 16, 1998. Retrieved on September 26, 2010.
- ^ New York Times
- ^ Wall Street Journal
- ^ a b Rose, Michael. "Hollywood Video expansion includes three regional offices." Portland Business Journal. Friday June 21, 1996. Retrieved on September 26, 2010.
- ^ "Movie Gallery completes Hollywood acquisition." Portland Business Journal. Thursday April 28, 2005. Retrieved on September 26, 2010.
- ^ a b Goldfield, Robert. "Poorman-Douglas swallows up Hollywood's Beaverton space." Portland Business Journal. Friday October 4, 1996. Retrieved on September 26, 2010.
- ^ Binole, Gina. "Hollywood sign imbroglio: No neon, no headquarters." Portland Business Journal. Friday August 29, 1997. Retrieved on September 26, 2010.
- ^ Miller, Brian. "There was never a dull moment in real estate." Portland Business Journal. Friday January 1, 1999. 1. Retrieved on September 26, 2010.
- ^ "Contact Us." Hollywood Video. June 11, 2004. Retrieved on September 25, 2010. "Hollywood Entertainment Corporation 9275 SW Peyton Lane Wilsonville, OR 97070."
- ^ McMillan, Dan. "Hollywood ends run as locally based company." Portland Business Journal. Friday May 13, 2005. [http://portland.bizjournals.com/portland/stories/2005/05/16/focus5.html 1. Retrieved on September 26, 2010.
