Hollywood Entertainment Corp. (

Nasdaq The Nasdaq Stock Market () (National Association of Securities Dealers Automated Quotations Stock Market) is an American stock exchange based in New York City. It is the most active stock trading venue in the US by volume, and ranked second ...

: HLYW), more commonly known as Hollywood Video, was a

home video Home video is prerecorded media sold or rented for home viewing. The term originates from the VHS and Betamax era, when the predominant medium was videotapes, but has carried over to optical disc formats such as DVD, Blu-ray and streaming me ...

and

video game Video games, also known as computer games, are electronic games that involves interaction with a user interface or input device such as a joystick, controller, keyboard, or motion sensing device to generate visual feedback. This fee ...

rental shop company started in 1988. The chain was the largest direct competitor to Blockbuster Video until it was purchased by

Movie Gallery Movie Gallery, Inc. (former NASDAQ ticker symbol MOVI) was the second largest movie and game rental company in the United States and Canada, behind Blockbuster Video. The company rented and sold Blu-ray Discs, DVDs, VHS tapes, and video game ...

in 2005. Hollywood Video ceased operations in May 2010, when

, its parent company, declared

Chapter 7 bankruptcy Chapter 7 of Title 11 of the United States Code (Bankruptcy Code) governs the process of liquidation under the bankruptcy laws of the United States, in contrast to Chapters 11 and 13, which govern the process of ''reorganization'' of a debto ...

. Its last US store closed on July 31, 2010, whereas the last official one in

Canada Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world's second-largest country by tot ...

closed on August 8 of that year. In October 2011, th
HollywoodVideo.com
site had been relaunched as a blog. While the website remains active, the last entry was made in October 2014.

History

20th century

In 1984, Mark Wattles left college and was struggling financially. Wattles' parents had given him and his wife a

VCR A videocassette recorder (VCR) or video recorder is an electromechanical device that records analog audio and analog video from broadcast television or other source on a removable, magnetic tape videocassette, and can play back the recording. ...

, which they used as a form of low-cost entertainment. Wattles later said: "I thought, 'There must be other people in America in the same shoes. I think this would be a great business." In 1985, Wattles borrowed money so he could open a 500 square-foot video rental store with 300 films, located in downtown

Portland, Oregon Portland (, ) is a port city in the Pacific Northwest and the largest city in the U.S. state of Oregon. Situated at the confluence of the Willamette and Columbia rivers, Portland is the county seat of Multnomah County, the most populous co ...

. In 1988, Wattles formed Hollywood Entertainment and served as the company's president and chief executive. Hollywood Video stores later opened in Washington, California, Nevada, and Texas. In 1993, Hollywood, which operated 16 stores, became a public company. As of 1994, the average Hollywood Video store was 7,500 square feet with 16,000 video tapes. In some instances, the company ordered up to 70 copies of a popular film for each store, while some stores stocked up to 200 copies of a single film. At that time, each store generated approximately $1 million, while 78 additional stores were planned to open in 1995. In January 1995,

Blockbuster Blockbuster or Block Buster may refer to: *Blockbuster (entertainment) a term coined for an extremely successful movie, from which most other uses are derived. Corporations * Blockbuster (retailer), a defunct video and game rental chain ** Bl ...

filed a $10 million lawsuit against Hollywood Entertainment for hiring five former Blockbuster employees. Blockbuster alleged that the employees knew some of the company's trade secrets, which could be used to aid Hollywood Entertainment. At the time, Hollywood Video had 117 stores, compared to Blockbuster's 2,800 stores. Hollywood Video was ranked fourth in national sales. In May 1995, a judge ruled in favor of Hollywood Entertainment, stating that Blockbuster had failed to demonstrate irreparable harm as a result of the hiring. In June 1995, Hollywood Entertainment had 153 stores in 11 states. The company's locations included stores operating under the Video Park and Video Central names. That month, Hollywood Entertainment announced plans to triple the number of stores by late 1997. In August 1995, Hollywood Entertainment purchased the 42-store Video Watch chain in the mid-western United States for $59 million. Video Watch was the last of four video rental chains that had been targeted by Hollywood Entertainment for purchase. In November 1995, Hollywood Entertainment announced plans to open 90 stores in Michigan over the next three years. The company also planned to open more than 200 stores in 1996. In 1996, Hollywood decided to establish three regional offices, with one each in the

Chicago (''City in a Garden''); I Will , image_map = , map_caption = Interactive Map of Chicago , coordinates = , coordinates_footnotes = , subdivision_type = Country , subdivision_name ...

Houston Houston (; ) is the most populous city in Texas, the most populous city in the Southern United States, the fourth-most populous city in the United States, and the sixth-most populous city in North America, with a population of 2,304,580 in ...

, and

San Francisco Bay Area The San Francisco Bay Area, often referred to as simply the Bay Area, is a populous region surrounding the San Francisco, San Pablo, and Suisun Bay estuaries in Northern California. The Bay Area is defined by the Association of Bay Area Go ...

Julie Wainwright Julie L. Wainwright is an e-commerce entrepreneur. She is the founder and CEO of The RealReal, an online marketplace for authenticated luxury consignment. Career Clorox Early in her career Wainwright began working for The Clorox Company in bran ...

became President and CEO of Reel.com, replacing founder, Stuart Skorman. After 27 months, in July 1998, CEO Mark Wattles announced Hollywood had purchased Reel.com "in a deal valued at $100 million", which included $30 million in cash to Reel's stockholders; Reel.com was to continue operating independently, and led by its CEO

, then Wainwright then left the organization to be replaced by Jeff Jordan.

21st century

Hollywood Video was the target of a

hostile takeover In business, a takeover is the purchase of one company (the ''target'') by another (the ''acquirer'' or ''bidder''). In the UK, the term refers to the acquisition of a public company whose shares are listed on a stock exchange, in contrast to t ...

attempt, initially announced at the end of December 2004 by competitor Blockbuster Video. Blockbuster announced an exchange offer of $14.50 per share ($11.50 cash and $3.00 in Blockbuster shares). In response, Hollywood Video agreed to a buyout on January 10, 2005, by Movie Gallery, a smaller competitor. Movie Gallery paid $860 million, $13.25 per share, and the assumption of $380 million in debt. Stocks closed at $13.85 on January 10 after this news. Blockbuster then dropped its purchase plans, citing antitrust concerns. Movie Gallery completed its purchase of Hollywood Video on April 27, 2005. Hollywood became a subsidiary of Movie Gallery and maintained its Oregon headquarters. In December 2011, the websit
hollywoodvideo.com
was relaunched as a movie news curator blog. The site used an automated "social scoring algorithm" to link to articles on the web pertaining to movies and other entertainment media content. The site also contained a blog written by a single editor (that was later expanded to multiple editors) about current movie-related news. As of April 2013, the "social scoring algorithm" part of the site was removed and replaced with the blog. The website also contained an interface for searching and buying movies from

Amazon.com Amazon.com, Inc. ( ) is an American multinational technology company focusing on e-commerce, cloud computing, online advertising, digital streaming, and artificial intelligence. It has been referred to as "one of the most influential economi ...

from within the Hollywood Video site.

Headquarters

At one time, Hollywood Video was headquartered in Beaverton,

Oregon Oregon () is a U.S. state, state in the Pacific Northwest region of the Western United States. The Columbia River delineates much of Oregon's northern boundary with Washington (state), Washington, while the Snake River delineates much of it ...

, in an office building. In 1996, Hollywood moved its employees out of the building two years into its five-year lease. In 1996, Poorman-Douglas Corp agreed to occupy all of the space in the Beaverton building, relieving Hollywood of extra rent payments. After Hollywood decided to leave Beaverton, it signed a long-term lease for a building in Wilsonville, Oregon. Robert Goldfield of the ''

Portland Business Journal Portland most commonly refers to: * Portland, Oregon, the largest city in the state of Oregon, in the Pacific Northwest region of the United States * Portland, Maine, the largest city in the state of Maine, in the New England region of the northeas ...

'' said that Hollywood Video "barely" took occupancy of the structure; then Mark Wattles, the chief executive, decided to move the offices and the Hollywood Video headquarters to the former Smith's Home Furnishings headquarters in Wilsonville. In 1996 170 full-time employees worked from the headquarters. The headquarters facility was no longer occupied by October 1998; as of that month the space was for lease. In 1997, when Hollywood was considering a new headquarters location, the City of Wilsonville had signage codes that did not allow companies to use neon. The codes made Hollywood consider using other locations. Members of the City of Wilsonville's development review boards said that neon was out of character for the Wilsonville Business Park, Hollywood Video's prospective location. In January 1999, Trammell Crow Co. bought the Thrifty Payless Inc. headquarters for $25.5 million and then broke the compound into sections, selling pieces of it for a total of $22 million; Trammell Crow retained control of the $8 million, headquarters building. Hollywood leased the headquarters building, and Hollywood remained headquartered in Wilsonville.

References

External links