Round up the usual suspects, another Billings-area video store is closing its doors.

As DVD rental services Redbox and Netflix continue to erode the market share of brick-and-mortar video rental shops, Movie Gallery Inc. announced recently that it has filed for Chapter 11 bankruptcy and will close 760 stores, including two in Billings.

Large posters hanging in the two Grand Avenue shops announce the impending closure and sales of its DVD collection.

That’s what brought out Billings resident Pat Cochrane. She said she’d never been to a Movie Gallery before but saw the signs advertising its closure and the DVD sale.

“We usually rent from Redbox,” said her 12-year-old son, Colton.

With all the movies on sale, Cochrane thought she’d check out the selection and hopefully get a good deal.

“We do watch a lot of DVDs,” she said, adding that they spend plenty each week at Redbox.

Movie Gallery stores on King Avenue, Old Hardin Road and Main Street in the Heights will remain open, as will the Movie Gallery in Laurel.

The two stores at 1403 and 3031 Grand Ave., aren’t the first closures for Movie Gallery in Billings. The company shut down a store on North 27th Street in March 2008.

Four months ago, Blockbuster closed its last store in Billings, which was located just down the street from the 1403 Grand Ave. Movie Gallery.

“Netflix hits us hard and Redbox. There is one (Redbox vending machine) in almost every store. They’ve really come on strong,” franchise spokesman Brad Scott said at the time.

Scott is the communications director for Bravo Entertainment in Kansas City, Mo., which owned the Blockbuster franchise in Billings.

Officials at Movie Gallery Inc. declined to comment Tuesday.

A Movie Gallery employee at the 1403 Grand Ave. also declined to comment beyond saying the store’s inventory of movies will be sold off rather than transferred to different stores.

He’s been given no exact date for his store’s closure and said he doesn’t know what will happen to its employees. He said those were decision the district manager will be making.

Redbox has become a strong competitor for traditional video stores. The company places vending machines that rent movies for $1 a day outside grocery stores, fast-food restaurants and gas stations.

It’s become so popular, some experts have said they’re hurting not just traditional rental stores but big Hollywood studios.

The Los Angeles County Economic Development Corp. released a study in December that found that Redbox’s dollar-a-day rental prices could cost studios “$1 billion in lost revenues.”

Contact Rob Rogers at rrogers@billingsgazette.com or at 406-657-1231.