Handleman Exits Music Business In North America
June 2, 2008 at 6:39 AM (PT)
HANDLEMAN COMPANY has announced that it is exiting the music business in NORTH AMERICA. In connection with that decision, HANDLEMAN has sold it's music inventory and selected other assets related to its WAL-MART business in the U.S. to ANDERSON MERCHANDISERS, L.P.
Separately, HANDLEMAN has also agreed in principle to sell substantially all of the assets and operations of its CANADIAN subsidiary to ANDERSON.
Pres./CEO ALBERT A. KOCH said, "Our decision to exit the NORTH AMERICAN music business was difficult but unavoidable. CD music sales have been declining at double-digit rates for several years both industry-wide and at our customers' stores, resulting in a sharp drop-off in our business. Unfortunately, even the significant steps we've taken over the past two years to reduce our costs have not enabled the Company to return to profitability. We have reluctantly concluded that there simply were not enough further cost reduction opportunities available to offset the margin erosion in future years from continuing sales declines."
In conjunction with these actions, HANDLEMAN will be reducing its U.S.-based work force by approximately 260 positions over the next several weeks. Most of these reductions are expected to occur at the Company's headquarters in TROY, MI and its distribution facility in INDIANAPOLIS, IN.