Movie Gallery to Close 51 Video Game Stores

Movie Gallery Inc. said that it would close 51 video game stores and that a slump in the movie business might hurt film rentals. Its shares dropped 15%, the biggest decline in almost three years.

The No. 2 video rental chain also named Timothy Price as chief financial officer. He came from Hollywood Entertainment Inc., which Movie Gallery bought in April.

The Dothan, Ala.-based company said that an “unimpressive slate of titles will continue to adversely impact our stores” and that it would close its unprofitable Game Crazy stores.

Shares of Movie Gallery fell $5.05 to $27.84.