Family Video has notified employees that all Springfield locations will be closing this month, with the exception of the store at 1802 North Grand Ave. The locations at 1614 S. MacArthur, 2919 S. Sixth St. and 3201 W. Iles are slated to close on Sept. 19.
Family Video is the last video rental chain in the U.S. and currently operates more than 500 stores in 20 different states and Canada, according to the company’s website. However, in the past 10 years the company’s focus has largely shifted to managing its real estate portfolio and leasing space to other businesses, including a partnership with Marco’s Pizza and sister companies such as Highland Pure Water and Ice, Digital Doc, StayFit 24 fitness centers and even animal clinics, through the Family Vet Group brand.
A 2017 Forbes article estimated Family Video’s real estate worth could be as much as $750 million and outlined owner Keith Hoogland’s strategy for using Family Video locations to grow the company’s real estate portfolio (“The last video chain: The inside story of Family Video and its $400 million owner,” Feb. 28, 2017). Sales from video rentals pay off the mortgage – typically within five years – and whether the location continues to operate as a Family Video or another venture, the underlying real estate remains valuable.
No announcement has been made regarding future plans for the Springfield-area locations.