The Video Update store in Eagan -- the last outlet of the defunct St. Paul-based video-rental chain -- has closed. The demise of the store at Lexington and Diffley Roads is the latest sign of the ongoing decline in bricks-and-mortar video rental businesses here and nationwide.

"There are too many other ways for people to get movies now," said Jim Lozinski, who operated the Eagan store for about 20 years with his brother Dave. The advent of Redbox rental kiosks in grocery stores, Netflix video rental by mail, streamed movies and the availability of films through on-demand cable have hurt business, he said.

A report earlier this year by market research firm NPD said Redbox is now the most popular on-site movie rental business, but it also noted a shift away from renting discs altogether, with more consumers opting for online streaming.

"We've been just hanging in there for the last few years," Lozinski said. He attributed the store's staying power to its loyal customer base.

Before closing for good Sept. 1, the brothers sold off much of their inventory of DVDs and Blu-ray discs. "The next thing for us will be hitting the job market," Lozinski said.

The closing appears to be the last remnant of the Video Update chain, which got its start with single store in Little Canada 30 years ago.

The chain had more than 600 stores in the United States and Canada when it filed for bankruptcy in 2000. That's when the Lozinskis negotiated a lifetime franchise to keep their business going.

Video Update was acquired out of bankruptcy in 2001 by a competitor, Movie Gallery Inc. That company, the country's second-biggest movie- and game-rental business behind Blockbuster, went out of business in 2010.

Blockbuster also hasn't escaped the industry meltdown, filing for bankruptcy in 2010. It was acquired last year by satellite television company Dish Network. The Twin Cities area still has a handful of Blockbuster stores, including outlets in West St. Paul and Rosemount.

Packaging plant for Lakeville

Consolidated Container Co., a packaging manufacturer based in Atlanta, plans to take over the lease of a Lakeville industrial building and will use it as a production plant.

The company recently expanded its footprint to Minnesota through its acquisition of Moorhead-based Roffe Container. Earlier this year a business entity of Roffe had bought the industrial property at 21860 Hamburg Av. for about $1.6 million, according to Dakota County property records.

Consolidated spokesman Richard Sehring said his company hopes to begin installing production equipment in the 46,000-square-foot building soon. He declined to say how many people the facility will employ when the buildout is completed in mid-2013.

Sehring said the new Lakeville plant and Roffe's Moorhead facility give Consolidated the opportunity to expand its business in the dairy and industrial markets. The company has 59 manufacturing facilities in North America that make blow-molded plastic containers for the food, beverage and chemical industries.

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