Video-Rental Giant Loses Some Franchise Outlets In The Las Vegas Valley

December 27, 2006 by Mark | 0 Comments

Lv Business Press:

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Las Vegans looking to rent movies during the holidays should find themselves with no shortage of deals. The line between online and in-store is blurring and the Blockbuster chain has thrown down the gauntlet to challengers such as online rentals and downloads, rental kiosks, and DVD sales, which have all eroded the profits of brick-and-mortar operations

One sure sign of the change is the demise of some local Blockbuster franchises. The top movie renter has 27 corporate stores in the Las Vegas Valley, but has seen the last of its franchisees shut their doors this year. Las Vegas-based JAS Associates closed its four Henderson franchises and one in Mesquite at the end of April. JAS also shuttered its two Utah stores.

One source familiar with the situation said Blockbuster’s elimination of late fees made it impossible for JAS to keep newly released movies on the shelves, as people had no incentive to return games and movies on time. The franchisee couldn’t survive in a “competitive market,” Blockbuster spokesman Randy Hargrove said. JAS and its registered agent could not be reached for comment.

In Franchising in USA and/or Canada, News

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