The Hollywood Video store in Baken Park and the Movie Gallery in Hot Springs will both be closing. The video rental stores are owned by Movie Gallery, Inc., which filed in February for Chapter 11 bankruptcy.

Also closing are the Movie Gallery in Aberdeen, two of three Hollywood Video stores in Sioux Falls and a Movie Gallery in Mitchell.

The company and its rival, Blockbuster, have faced losses amid competition from online rental services Netflix and Redbox.

The company planned to immediately close 760 U.S. stores and possibly close more stores during the Chapter 11 process, according to a news release on its Web site.

“Over the past two years, Movie Gallery took a number of steps to respond to its business challenges and position the company for future success, including closing several hundred underperforming stores across the country; however, these actions were not sufficient,” the company said. “Movie Gallery’s goal is to emerge from the restructuring process with a new and sustainable business model centered on a smaller base of profitable stores.”

An employee of Hollywood Video directed calls to the company’s corporate media office. A message left there was not returned Tuesday. No one answered the phone at the Hot Springs store.

Contact Barbara Soderlin at 394-8417 or barbara.soderlin@rapidcityjournal.com.