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Video Update's recently filed annual report paints a bleak picture of a national chain with mounting debt and declining cash flow.
The St. Paul, Minn.-based movie rental chain said it lost $87 million in its fiscal fourth quarter ended April 30, compared with a net loss of $15.4 million for the same period a year ago.
The company also reported that it plans to shutter 70 of its 652 company-owned stores and focus on improving operations and raising rental prices on new releases at existing stores.
Video Update executives did not return telephone calls last week.
Video Update also pointed to expanding previously viewed video sales and aggressively marketing DVD rentals as part of its ongoing plan to reinvent itself.