BlowOut Seeking Financial Backers
ertainment here, which operates leased-space video departments in 151 stores, has closed 37 departments in the last year and is seeking financial backers, according to a press statement outlining the company's third-quarter operating results.
Press reports, citing unnamed sources, have said that BlowOut is considering buyout bids from specialty retailers Movie Gallery, Dothan, Ala., and Video City, Bakersfield, Calif.
BlowOut's departments are located in Wal-Mart and Kmart supercenters, as well as in Ralphs, Fred Meyer and Food 4 Less stores. The company operated 188 outlets last year at this time.
BlowOut also reported that it had been served with notices of default by two secured lenders, but continues to draw on its working capital line of credit. "The company is aggressively pursuing alternatives to satisfy its secured lenders," the press statement read.
Last month, BlowOut was delisted from the Nasdaq stock exchange for failing to meet net tangible assets, market capitalization, net income and bid price requirements.
Rentrak Set to Offer DVD, Player Rental
PORTLAND, Ore. -- In conjunction with its 10th-anniversary celebration, Rentrak Corp. will begin distributing DVD movies and testing a player-rental program. Eleven studios and other suppliers have agreed to participate in the DVD launch. Rentrak distributes videos on a Pay Per Transaction basis.
The player-rental program is being run with the help of New Century Multimedia Group, Seattle, and will include 250 stores initially and a selection of 100 DVD titles. "We are convinced that DVD sales will take off once consumers are exposed to the product's superior features and once they are confident new releases will be available on the format at their local retailer for rental," said Michael Lightbourne, Rentrak's executive vice president.
Top 10 Supermarket Video Rental Titles
Rank Last Wk Title (Wks Out)
The Mask of Zorro (1)
1 N Columbia $22.95
Dr. Doolittle (2)
2 3 Fox $19.98
Small Soldiers (4)
3 2 Dreamworks $22.99
4 1 Buena Vista $22.99
The Negotiator (2)
5 8 Warner $107.37
6 4 Columbia $22.95
The Horse Whisperer (4)
7 6 Buena Vista $107.37
Deep Impact (6)
8 5 Paramount $107.37
Hope Floats (7)
9 7 Fox $19.98
Sliding Doors (1)
10 N Paramount $100.96
Week ended Dec. 6
This chart, tailored for the supermarket video market, is based on information taken from more than 1,000 supermarket rental locations serviced by Ingram Entertainment, La Vergne, Tenn.