Video Ezy has snapped up failed retail chain EzyDVD, strengthening its position in both the retail and online markets

   
Parent company the Franchise Entertainment Group — which also operates Blockbuster Australia — has purchased EzyDVD brand and online business, the franchise network, as well as stock, plant and equipment and 11 company-owned EzyDVD stores.
 
Retail is a key growth area for the FEG and the acquisition will give the group a presence on the high street and major shopping malls. EzyDVD is also the country’s biggest online retailer, which gives the group further options in the home shopping and digital arenas.
 
FEG Director Paul Uniacke expects EzyDVD would maintain its position as a market leader because of its strong customer base and excellent franchisee network.
 
“We recognised the strength of the EzyDVD brand, and saw it as a natural fit with our existing businesses,” he adds. “We intend to continue the EzyDVD brand and build on its reputation as an entertainment leader in online and store-based sales.”
 
Receiver David Kidman says the sale was a good result as it provides security for the future of EzyDVD’s 25 franchisees and their employees along with the employees of 11 company stores.
 
“Franchise Entertainment Group is one of the largest franchisors in the Australian retail market and has a high level of experience and knowledge in the industry,” he says.
 
However, there have been some casualties: EzyDVD’s head office, warehouse and distribution facility is to close, resulting in approximately 30 redundancies. In addition, 15 of EzyDVD’s non-profitable company-owned stores have now closed.