The second-largest vidstore chain in the nation, West Coast Video Enterprises , has emerged from Chapter 11 bankruptcy protection.
Prexy Elliot Stone announced last Wednesday that the company’s creditors have accepted West Coast’s reorganization plans, filed with the U.S. Bankruptcy Court for the eastern district of Pennsylvania.
The Philly-based franchise chain had around 400 stores when it filed Chapter 11 last February.
Moving forward, the chain plans to focus on franchise sales in the Chicago area and develop alliances with a broader range of suppliers in order to diversify into new technologies in home entertainment.
Operations will be restructured, including the creation of regional councils of franchisees, and the creation of a distribution company called West Coast Services, run by a board of directors of franchisees.
The filing last February was in response to obligations, suits and claims against Red Lion Entertainment Inc., one of West Coast’s largest franchisees. Red Lion had $ 6.6 million in bank debt that was guaranteed by West Coast.