J&R Music World has announced that it will close its Manhattan store location today. The announcement is likely a surprise to consumers – but those in the industry in the New York Metro market are not surprised. J&R has been struggling for years, starting with a major push down a slippery slope in the wake of the September 11, 2001 World Trade Center terrorist attacks which were close enough to damage their location in lower Manhattan.
Financial
Talk About Income Inequality! Just Four Companies Generated 90% of All Net Profits in South Korea
In a report that is sure to surprise many and even stun some, the Korea Fair Trade Commission, South Korea’s fair trade watchdog, announced that just four large companies – or conglomerates – generate 90% of all of the total net profit earned in the country in 2013. The commission, which closely tracks the performance of what they call the largest conglomerate companies, issues their report every April with this year’s report showing the share of the top four have continued to grow since 2011.
But wait until you see the percentage of profits from just the top TWO companies… [Read more…] about Talk About Income Inequality! Just Four Companies Generated 90% of All Net Profits in South Korea
Deconstructing D&M Holdings; Company Sells Calrec Audio and Explores Other Options
Former CEO Pacor Comments on Brand Acquisition Strategy
We learned last week that D&M Holdings, also known as the D+M Group, sold off its Calrec Audio brand to Electra Partners, a London-based private equity company. D&M received £14 million ($23.1 million) for Calrec, a designer of premium audio products and live-to-air consoles for the broadcast market. The move is part of a plan to divest itself of all non-core businesses, CEO Jim Caudill has said in press reports.
See more on the company’s aggressive strategy to unload non-core businesses… [Read more…] about Deconstructing D&M Holdings; Company Sells Calrec Audio and Explores Other Options
What Happened When the Largest LCD Display Company in Japan Went Public? ‘A Disaster’
Japan Display, Inc., the largest manufacturer of LCD displays for smartphones and tablets in Japan, launched their initial public offering (IPO) on Wednesday this week amid great anticipation. It was a big listing – with a total value of $3.2 billion, it was the biggest IPO since Suntory’s food-and-beverage unit raised $3.9 billion in 2013.
So how did Day 1 of their stock offering go? ‘A disaster, no doubt…” [Read more…] about What Happened When the Largest LCD Display Company in Japan Went Public? ‘A Disaster’
JVC Kenwood’s Early Retirement Solicitation Falls Short of Goal
JVC Kenwood Corporation announced the final results of their voluntary early retirement solicitation first announced late last year. This solicitation was offered as part of a comprehensive effort to turn around the company’s flagging fortunes and included many steps to cut overhead and improve profitability – such as this effort to cut employment by incentivizing employees to leave the company.
Did their program succeed? See the results below… [Read more…] about JVC Kenwood’s Early Retirement Solicitation Falls Short of Goal
Nortek Reports Uneven Fiscal Results; With A/V Biz in Decline, Security is TECH Segment’s Rising Star
SEC Filings Reveal Serious Decline in 2013 Sales of A/V Lines
Nortek, Inc., a Rhode Island-based diversified manufacturer of a variety of environmental and technology products for home and business, announced its financial performance for the fiscal fourth quarter and year ended December 31, 2013 on Tuesday and conducted a conference call with analysts Wednesday morning. Nortek is the parent company of Core Brands, a group of eleven A/V brands that have a significant impact on the custom integration business – and, for this reason, we follow them closely.
The company saw sales increases for both the quarter and the year; however, it booked a net loss for both periods, suggesting that its previously announced restructuring plan is still a work-in-progress.
See more on the company’s overall performance, as well as the unsettling news we heard about the TECH division, which includes Core Brands…
AVAD Hit by Significant Layoffs Associated with Ingram Micro Restructuring
BREAKING NEWS
In a story that has largely flown under the radar in our industry but is being widely discussed at street level, Ingram Micro has announced plans it calls its “global organizational effectiveness program” that, among other things, calls for substantial layoffs in its North American operations. These layoffs will hit a division that is one of our industry’s largest distributors of custom integration products, known to most of us as AVAD.
Details of the restructuring are incomplete…but what we know so far appears sobering… [Read more…] about AVAD Hit by Significant Layoffs Associated with Ingram Micro Restructuring
Bain Capital Seeks to Restructure D&M Holdings Buyout Financing – It Could be Tough
Reuters reported this week that Bain Capital, the private equity company that virtually became a household name when CEO Mitt Romney ran for president against Barack Obama, is seeking to refinance the buyout financing it used to acquire D&M Holdings, Inc., also known as the D+M Group. It’s not going to be easy.
See what Bain Capital is up against in their goal of restructuring their D&M buyout debt… [Read more…] about Bain Capital Seeks to Restructure D&M Holdings Buyout Financing – It Could be Tough
Sony Cuts Get Deeper – A Third of U.S. Staff to be Cut; 20 Sony Stores Will Close
Although not a surprise, Sony Electronics in San Diego began releasing details of a substantial cutback in U.S. facilities and personnel. The company says it will cut 33% of its U.S. staff – about 1,000 employees. Also, the company announced a major retreat from retail as it will close 20 of its 31 total Sony Store locations.
See more on this significant Sony restructuring… [Read more…] about Sony Cuts Get Deeper – A Third of U.S. Staff to be Cut; 20 Sony Stores Will Close
Yamaha Announces Financial Results Through Fiscal Third Quarter – It’s All Good
Yamaha Corp., likely heaving a sigh of relief, announced their financial results for the 9-month period through the fiscal third quarter (April 1, 2013 – December 31, 2013) with almost all good news. Showing significant sales and profit gains, the musical instrument and electronics manufacturer benefited from positive currency exchange rates…and lower overhead due to previous cost-cutting efforts.
