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Hollywood Video's corporate parent closing all U.S. stores

Movie Gallery, the company that owns Movie Gallery and Hollywood Video rental stores and Game Crazy stores, is closing all of its U.S. locations.

The company already had announced it was closing hundreds of stores and told workers over the weekend that it planned to close the remaining 1,906 stores.

Hollywood Video has a store at 1105 W. Main St. in Merced, and at 1462 S. Mercey Springs Road in Los Banos, and Game Crazy has an Atwater location.

The company is going through its second bankruptcy. Movie Gallery is the nation's second-largest video rental chain after Blockbuster. Experts say its overly ambitious expansion collided with the growth of mail-rental companies like Netflix, streaming video and $1-a-night kiosks like Redbox or Blockbuster Express.

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