An additional 400 stores were scheduled to close during the bankruptcy reorganization. Movie Gallery emerged from Chapter 11 in May 2008 and appointed C. J. Gabriel, Jr. as the new chief executive officer. Founder and former CEO Joe Malugen continued to serve on the Movie Gallery Board of Directors until leaving on July 30, 2008. The company relocated its headquarters to Wilsonville, Oregon, (home of the Hollywood Video subsidiary) in late 2008. In January 2009, they closed their Wilsonville distribution center.