Movie Gallery’s Loyd leaves company
JUNE 24 | Mityas will take over merchandising duties
-- Video Business, 6/24/2008 1:21:00 PM
JUNE 24 | Movie Gallery executive VP and chief merchandising officer Mark S. “Bo” Loyd, who had worked for the No. 2 U.S. movie-rental chain for more than two decades, stepped down last week. His resignation took place one month after the company emerged from bankruptcy and replaced its co-founder and CEO.
Chief operating officer Sherif Mityas, who joined the company earlier this month, will assume Loyd’s duties, the company said in a statement. Movie Gallery didn’t say why Loyd resigned.
Loyd joined the company in 1986 and was promoted to executive VP in 2003.
Movie Gallery, which filed Chapter 11 in October and has closed more than 1,000 stores since September, emerged from bankruptcy last month and named chairman Neil Subin and president and CEO C.J. “Gabe” Gabriel Jr. as successors to co-founder Joe Malugen.
The company emerged from Chapter 11 on May 20 with about 3,300 stores in the U.S. and Canada under Movie Gallery, Hollywood Video and Game Crazy brands.
The debt Movie Gallery incurred to acquire Hollywood Entertainment, coupled with changes in the industry such as the increased competition between Blockbuster and Netflix over mail-order rentals, were key factors in leading Movie Gallery, once a thriving rental chain catering to small- and mid-size markets, into its bankruptcy.
