A 3rd District judge has stopped the scheduled Movie Buffs video liquidation sale pending resolution of an ownership dispute.
One of the embattled video store's secured creditors, BK Properties Inc., was planning to sell 175,000 videotapes, video games and videodiscs at noon Monday.However, on Friday, Judge Frank G. Noel blocked the sale after Rentrak Corp. filed a lawsuit claiming it owned more than 42,000 of the videos. Attorney Peter Billings Jr. said the Portland-based Rentrak had leased the videos to Movie Buffs.
Rentrak said in the lawsuit that it had leased 81,214 videotapes to the Movie Buffs chain of retail outlets. It demanded their return earlier this year, but Movie Buffs kept about half, the lawsuit said.
Noel's order postpones the public sale for two weeks while an audit determines which videos belong to whom, Billings said.
Movie Buffs filed for Chapter 11 bankruptcy in June but dropped the petition last month. Company owners said they decided to take care of creditors on their own rather than reorganize their debts under bankruptcy protection.
The firm filed for bankruptcy shortly after Utah County prosecutors filed pornography charges against three top Movie Buffs officials.
Two officials pleaded to reduced charges. The first trial against the third ended in a mistrial.