Streambank appointed to unload assets
The Hollywood Video name and those associated with the failed video store chain are up for sale.
A bankruptcy court judge has approved hiring Streambank, a firm specializing in the sale of intellectual property, to find new owners for the trademarks, domain names and databases for Hollywood Video, Movie Gallery, Game Crazy and Reel.com. The parent company, Movie Gallery, filed for Chapter 11 bankruptcy protection in February and is selling off its 2,400 stores.
The challenge, of course, is finding someone willing to pay for names connected to a failed business in a sector, DVDs, that is in decline.
“We have to get over that hurdle, clearly,” said Gabe Fried, founder of Streambank. “Movie Gallery had loyal customers, and there is a void now,” he said. “We believe the business can come back.”
Not necessarily in bricks and mortar stores, Fried said, but perhaps as a kiosk business, or even as a Internet video service, or an on-demand channel on cable or satellite.
Streambank has found buyers in the past for the names of other defunct retail chains. In 2007, Streambank sold the Tower Records name to Cayman Holdings for $4.2 million. Cayman now sells music from a website under the Tower name.
And last year Streambank sold the Circuit City name to Systemax for $17 million. The company, which trades on the New York Stock Exchange, operates a Circuit City website selling electronics.
At its peak, Movie Gallery operated 4,000 outlets in the U.S. and Canada for DVDs and videogames.