Erol’s Video Sold to Blockbuster for $40 Million
Remember Erol’s? They were the awesome local video chain where we rented Goonies, Ghostbusters (the original), or the Gremlins. It was a sad day when the local powerhouse came to an end with the Blockbuster acquisition.
This article below by Mark Potts in The Washington Post on November 20th, 1990, talked about the recent acquisition.
Erol’s Inc., which over the past decade has become synonymous with videotape rentals in the Washington area, agreed yesterday to be taken over by its largest competitor, national video giant Blockbuster Entertainment Corp., bringing one of the toughest local retailing battles in memory to a dramatic end.
Blockbuster, which arrived in the Washington market less than two years ago to challenge Erol’s, said it agree to acquire the Springfield-based company for $40 million, although Erol’s owner Erol Onaran will get less than that because not all of the payment is in cash.
Over the next few months, most Erol’s stores will become Blockbuster location and others will close. Erol’s membership cards also will be converted to Blockbuster memberships, company officials said, and the stores will operate under Blockbuster’s basic rental policy of $3 for three nights.