Jumbo Gets Bigger11 Mar, 2002 By: Hive News
Canadian rental chain Jumbo Entertainment Inc. got a little bit bigger today with the acquisition of the three-store Starstruck Entertainment DVD and VHS sellthrough chain.
"Starstruck is a Canadian leader on the retail side of the business and has been in the forefront of the emergence of DVD and has successfully developed a reputation as the place to shop for DVD in the Metropolitan Toronto area," Jumbo chairman Ken Fowler said. "We at Jumbo Entertainment look forward to building a stronger sellthrough video and DVD business and expanding the Starstruck Entertainment concept as demand from consumers for more and more DVD movies continues to grow rapidly."
Starstruck operates from retail premises at Square One Shopping Centre and Sherway Gardens Shopping Centre in suburban Toronto, ON, and at Burlington Mall at Burlington, ON.
Terms were not disclosed except that the deal is structured as a share purchase.
"We look forward to extending Starstruck's retail expertise and in particular its product purchasing know-how to the operations of our Jumbo Video and Microplay businesses," said James Gormley, Jumbo president and CEO of and former controlling shareholder of Starstruck. "We see the Starstruck acquisition as a win-win situation for the entire chain."