News

Outerwall to discontinue Rubi coffee kiosks

December 11, 2013

Accompanying the news of Anne Saunders' departure from Redbox, Outerwall quietly closed the doors on several of its new ventures.

Outerwall will discontinue three new venture concepts, Rubi, Crisp Market and Star Studio. The wind-down process is expected to be substantially complete by the end of the first quarter of 2014. Outerwall will continue to invest in the rollout of ecoATM, as well as a limited investment in its SAMPLEit concept. The three failed ventures join Orango, a kiosk designed to sell electronics, which was discontinued earlier this year.

"This comprehensive review reaffirms our confidence in Outerwall's solid foundation, notably our core Coinstar and Redbox businesses and the company's strong cash flows," said Scott Di Valerio, Outerwall's CEO. "At the same time, ecoATM provides the potential for another meaningful pillar in our automated retail platform, and we believe SAMPLEit merits a continued investment based on the potential we see in the business. By focusing on the new ventures with the greatest opportunity, we expect to move toward breakeven segment operating results more quickly."

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