National Entertainment buys most assets of defunct Movie Gallery chain

New York City -- Movie merchandise seller National Entertainment Collectibles said Thursday that it had acquired most of the assets of Movie Gallery, which has been liquidating its Hollywood Video, Movie Gallery and Game Crazy stores.

Movie Gallery, once the nation's second-largest video and game rental chain with 4,000 stores in the United States and Canada, filed for bankruptcy in February. In October, a federal bankruptcy judge in Richmond, Va., approved the auction of its brand names, Internet domain names and customer databases.

National Entertainment said the purchase of Movie Gallery assets is part of its plan to expand into content development and distribution. It said that in the coming weeks it will have partnership announcements to sell products through kiosks and stream content online.