Hollywood Entertainment Corporation (Nasdaq

NASDAQ

The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...

: HLYW), known as Hollywood Video, was a VHS

VHS

The Video Home System is a consumer-level analog recording videocassette standard developed by Victor Company of Japan ....

, DVD

DVD

A DVD is an optical disc storage media format, invented and developed by Philips, Sony, Toshiba, and Panasonic in 1995. DVDs offer higher storage capacity than Compact Discs while having the same dimensions....

, and video game rental shop

Rental shop

A rental shop, also known as a video library, is a business that allows a consumer to temporarily obtain a reusable good or product for a specified period of time in exchange for payment, a process known as renting...

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

Movie Gallery

Movie Gallery, Inc. was the second largest movie and game rental company in the United States, behind Blockbuster Video. The company rented and sold Blu-ray Discs, DVDs, VHS tapes, and video games...

 in 2005.

Movie Gallery (and therefore Hollywood Video) declared Chapter 7 bankruptcy in May 2010 announcing an end of corporate operations and a liquidation

Liquidation

In law, liquidation is the process by which a company is brought to an end, and the assets and property of the company redistributed. Liquidation is also sometimes referred to as winding-up or dissolution, although dissolution technically refers to the last stage of liquidation...

 of all assets.

History

In 1993 Hollywood, which operated 16 stores, became a public company. In 1996 Hollywood decided to establish three regional offices, with one each in Greater Chicago, Greater Houston

Greater Houston

Houston–Sugar Land–Baytown is a 10-county metropolitan area defined by the Office of Management and Budget. It is located along the Gulf Coast region in the U.S. state of Texas...

, and the San Francisco Bay Area

San Francisco Bay Area

The San Francisco Bay Area, commonly known as the Bay Area, is a populated region that surrounds the San Francisco and San Pablo estuaries in Northern California. The region encompasses metropolitan areas of San Francisco, Oakland, and San Jose, along with smaller urban and rural areas...

.

Purchase of Hollywood Video

Hollywood Video was the target of a hostile takeover

Takeover

In business, a takeover is the purchase of one company by another . In the UK, the term refers to the acquisition of a public company whose shares are listed on a stock exchange, in contrast to the acquisition of a private company.- Friendly takeovers :Before a bidder makes an offer for another...

 attempt, initially announced at the end of December 2004 by competitor Blockbuster Video

Blockbuster (movie rental store)

Blockbuster LLC is an American-based provider of home video and video game rental services, originally through video rental shops , later adding DVD-by-mail, streaming video on demand, and kiosks. At its peak in 2009, Blockbuster had up to 60,000 employees. There are around 1700 Blockbuster...

. In February 2005, Blockbuster announced an exchange offer of $14.50 per share ($11.50 cash and $3.00 in Blockbuster shares).

In order to create a stronger position against the hostile takeover, Hollywood Video agreed to a buyout on Monday, January 10, 2005 by its smaller competitor Movie Gallery. 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 anti-trust 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.

Headquarters

At one time Hollywood Video was headquartered in Beaverton

Beaverton, Oregon

Beaverton is a city in Washington County, Oregon, United States, seven miles west of Portland in the Tualatin River Valley.As of the 2010 census, the population is 90,267. This makes it the second-largest city in the county and Oregon's sixth-largest city...

, Oregon

Oregon

Oregon is a state in the Pacific Northwest region of the United States. It is located on the Pacific coast, with Washington to the north, California to the south, Nevada on the southeast and Idaho to the east. The Columbia and Snake rivers delineate much of Oregon's northern and eastern...

, in an 85000 square foot office building. In 1994 Hollywood moved its employees out of the building one year into its five-year lease. Hollywood continued paying rent to James Berrey, the Beaverton building's owner. 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 166000 square foot building in Wilsonville

Wilsonville, Oregon

Wilsonville is a city primarily in Clackamas County, Oregon, United States. A portion of the northern section of the city is in Washington County. Originally founded as Boones Landing due to the Boones Ferry which crossed the Willamette River at the location, the community became Wilsonville in...

, Oregon. Robert Goldfield of the Portland Business Journal 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 173000 square foot Smith's headquarters facility was no longer occupied by October 1998; as of that month the space was for lease. Hollywood's Nasdaq trading became no longer active.

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 77 acres (31.2 ha) 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, 120000 square foot headquarters building. Hollywood leased the headquarters building, and Hollywood remained headquartered in Wilsonville.

When Movie Gallery bought Hollywood, Hollywood became a subsidiary of Movie Gallery and was headquartered out of the same Oregon offices.