JUMBO VIDEO SHEDS VIDEO RENTAL BUSINESS
By Adnews Staff
Jumbo Entertainment Inc. of Burlington, Ont. is getting out of the video rental business because competition is getting too tough. The company is selling its franchising assets and business to West Coast Entertainment Corp. of Philadelphia for $9.5 million. Jumbo is the fourth-largest video rental chain in Canada, with 63 franchised outlets across the country and one corporate-owned store in Burlington. Advertising for Jumbo Entertainment is done by Anas Marketing of Washington, D.C. West Coast operates 531 video stores in North America. It is expected that West Coast will keep the Jumbo name because it has brand recognition. Jumbo still owns an 80% stake in Roadware Corp. of Paris, Ont. The company makes specialized vehicles that gather data on pavement condition and road characteristics.