DOTHAN, Ala. (AP) - Movie Gallery, which is exiting Chapter 11 bankruptcy protection, has named C.J. Gabriel Junior, president and chief executive to succeed founder Joe Malugen.

Gabriel was previously executive vice president of marketing, merchandising and supply chain management at Albertsons, a grocery
store chain.

As part of the company's restructuring, Malugen will be succeeded as chairman by Neil Subin.

Dothan-based Movie Gallery's financial troubles started after it acquired Hollywood Video in early 2005 to become Number 2 in the industry behind Blockbuster. Its stock traded above $30 a share for a time, but the acquisition cost it about $850 million, plus assumed debt of about $350 million.

Movie Gallery also faced increased competition from online networks like Netflix and Wal-Mart.

(Copyright 2008 by The Associated Press. All Rights Reserved.)