Fueled by a recent deal with Cincinnati's Kroger Co.,
Houston-based self-service DVD kiosk supplier TNR Entertainment
has completed a capital infusion of $45 million with
MCG Capital Corp. in Arlington Va. to support TNR's
expansion into nationwide markets, more than doubling
its installed base and establishing 25 new geographic
markets.
Kroger plans to install additional TNR automated DVD
rental kiosks at 1,300 locations across the country.
Deployment of the kiosks under the new Kroger agreement
is set to begin immediately and is expected to be completed
by the first quarter of 2007.
"We've significantly exceeded our growth plans
to date, with extraordinarily strong customer response
and increasing profits for our supermarket partners
that support a nationwide rollout," said Richard
B. Cohen, c.e.o. of TNR. "This additional capital
means we can accelerate our plans, penetrating new underserved
markets and taking advantage of economies of scale."
TNR currently serves 200,000 customers monthly across
more than 600 locations in several grocery chains, including
A&P, Food Lion, HEB, Kroger/King Soopers, Publix,
Roundy's/Pick 'n Save, Safeway/Randall's, and Spartan/Family
Fare.
TNR's kiosks, branded "The New Release,"
house up to 1,000 units each, representing more than
200 titles, including new releases, and operate on a
wireless communications network. Rentals cost $1 per
day, with no late fees.
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