Handleman Co., the parent of Crave Entertainment, reports $53.4 million in net losses for fiscal 2007.
Entertainment and videogame company Handleman Co. announced a disappointing fiscal year highlighted by a net loss of $53.4 million. The year, which ended on April 28, saw revenues of $1.32 billion, an increase of $10 million from the previous year.
Handleman Chairman and CEO Stephen Strome stated,
"The financial results for fiscal 2007 were disappointing and did not meet our expectations. In response, the company has implemented several programs to streamline costs, including work force reductions, consolidation of distribution facilities, reductions in benefit programs, and several initiatives to lower customer product returns. The company expects to realize annual cost savings in excess of $20 million in fiscal 2008 as a result of these initiatives."
The losses have been attributed to the closure of a distribution agreement with Wal-Mart's England arm ASDA and investments in new business, such as a greeting card distribution deal with Tesco plc., a leading retail outlet. Shares of Handleman (HDL) fell nearly 8 percent on the news.