Video retailer Hollywood Entertainment took a $48.5 million restructuring charge on its Reel.com unit Wednesday as it posted a broadened second-quarter loss of $63 million.
Companywide, the quarterly red ink compared to a loss of $8.3 million in the same period last year.
Excluding Reel.com operations, the Portland, Ore.-based retailer managed a profit of $6.5 million in the latest quarter. Its brick-and-mortar revenue climbed to $310.7 million and overall revenue jumped to $322.6 million — both 29% increases.
Reel restructuring charge follows a June 12 announcement that the unit’s e-commerce operations would be discontinued. Reel now operates mostly as a Web site for news and promotion about home entertainment releases.
“Closing Reel’s e-commerce operations was clearly the right decision,” company chief Mark Wattles said.