HILLSIDE, N.J., Oct. 31, 2014 /PRNewswire/ -- Draw Another Circle, LLC and MovieStop, LLC today announced the signing of a definitive agreement under which Draw Another Circle will acquire MovieStop, adding to the previously acquired Hastings Entertainment, Inc. to form a retail family of stronger, more efficient providers of movies and entertainment products. Customers will benefit from enhanced offerings across multiple distribution channels and markets. Working under the same ownership, the companies will also have significantly improved financial strength and flexibility, with the ability to deliver long-term operating performance and improvements through its increased scale and significant synergy opportunities.
"Working together, the two companies will enhance our ability to serve customers around the U.S., open up new markets, make us a more attractive partner to our vendors, and increase value," said Joel Weinshanker, CEO of Draw Another Circle. "Hastings Entertainment and MovieStop share a similar vision and culture, and will greatly benefit from drawing on the industry's most talented people, combining our best practices and realizing significant savings. We are confident that this transaction will allow us to build a more competitive enterprise for the long term. We believe in and support the future of physical media and in the innovation and growth of our great vendor partners."
Despite the growth of digital entertainment delivery, physical media continues to play a major role in home entertainment. U.S. sales of DVD and Blu-Ray discs last year reached nearly $8 billion in sales, with approximately 700 million units sold. Research conducted by Home Media Magazine found that the total number of DVD and Blu-Ray discs sold during the first half of 2014 was up more than 2%, and according to a report by the Digital Entertainment Group, Blu-Ray disc sales rose 10% in the second quarter of 2014.
"Hastings has transformed from a retailer of books, music, and movies to a leading multimedia entertainment retailer combining the sale of new and used books, videos and video games, comics, toys, card and board games, music, trends and consumer electronics merchandise, with the rental of videos and video games in a superstore format," said Alan Van Ongevalle, President and Chief Operating Officer of Hastings. "We have enhanced our stores and expanded our merchandise offerings, we have a format that works, and now our focus is on growth. The addition of MovieStop to the Draw Another Circle family helps to extend our reach of product, adding 42 stores in major markets and prime locations at a fraction of the cost of what it would take to build new stores."
Russ Howard, CEO of MovieStop, added "Hastings brings significant expertise in entertainment trend merchandise for our customers which complements our broad catalog of movie titles, and MovieStop contributes a unique business model of buy/sell/trade that offers the consumer unrivaled value, selection, and service, as well as providing expertise in major market and mall-based locations."
MovieStop, LLC is a leading value retailer of new and used movies based in Atlanta, GA. MovieStop currently operates 42 destination locations in 10 states, primarily along the Eastern United States Coast. The chain was established in 2004 originally operating as a division of GameStop, and subsequently spun out into a private entity.
Over the last 10 years, MovieStop has perfected a unique business model (buy / sell / trade) that offers the consumer unrivaled value, selection and service. The concept revolves around selling the broadest catalog of new and used movie titles alongside the latest new release hits. Central to the concept is MovieStop's proven ability to make the market on used movie titles on a large scale. MovieStop has changed the way consumers purchase movies by offering significantly better value, selection, and service as compared to its contemporaries.
Founded in 1968, Hastings is a leading multimedia entertainment retailer that combines the sale of new and used books, videos, video games and CDs, and trends and consumer electronics merchandise, with the rental of videos and video games in a superstore format. We currently operate 125 superstores, averaging approximately 24,000 square feet, primarily in medium-sized markets throughout the United States. We also operate four concept stores, Sun Adventure Sports, located in Amarillo, Texas and Lubbock, Texas, and TRADESMART, located in Littleton, Colorado and Albuquerque, New Mexico.
We also operate www.goHastings.com, an e-commerce Internet web site that makes available to our customers new and used entertainment products and unique, contemporary gifts and toys. The site features exceptional product and pricing offers.
SOURCE Hastings Entertainment, Inc.