THE BANK OF NEW YORK, as Administrative Agent Asset Solutions Division

Exhibit 10.1

April 21, 0000

XXX XXXX XX XXX XXXX, as

Administrative Agent

Asset Solutions Division

000 X. Xxx Xxxxxxx Xxxx.

Xxxxx 0000

Xxxxxx, XX 00000-0000

Attention: Administrative Agent Portfolio

Manager

Facsimile: (000) 000-0000

email: xxxxxxxxx@xxxxxxxx.xxx

Ladies and Gentlemen:

Reference is made to that certain Secured Super-Priority Debtor In Possession Credit and Guaranty Agreement, dated as of October 16, 2007 (as has been amended, restated, supplemented or otherwise modified from time to time, the “DIP Credit Agreement”) by and among Movie Gallery, Inc. (the “Company”), the Subsidiaries party thereto, the Lenders party thereto and The Bank of New York, as administrative agent and as collateral agent. Terms used and not otherwise defined herein shall have the meaning set forth in the DIP Credit Agreement.

Pursuant to Section 5.1(g) of the DIP Credit Agreement, this letter serves as notice to the Administrative Agent and the Lenders that the Company will not be able timely to comply with the requirement under Section 5.1(c) of the DIP Credit Agreement to deliver audited financials as of today. The Company continues to work with its auditors to complete the necessary steps for such auditors to complete the audit for fiscal year 2007.

MOVIE GALLERY, INC.
By:		/s/ Xxxxxx Xxxxxxx
Name:		Xxxxxx Xxxxxxx
Title:		Chief Financial Officer

cc: Xxxxxx and Xxxxx, LLP

000 Xxxx Xxxxxx, Xxxxx 0000

Xxxxxx, Xxxxx 00000

Attention: Xxxxxx X. Xxxx, Esq.

Facsimile: (000) 000-0000

email: xxxxxx.xxxx@xxxxxxxxxxx.xxx