DirectToU LLC, a division of Alliance Entertainment Holding
Corporation (Nasdaq: AENT) (“Alliance Entertainment”, “Company”), a
distributor and wholesaler of the world’s largest in stock
selection of music, movies, video games, electronics, arcades, toys
and collectibles, today announced that it has launched a new
publishing venture under the banner of Alliance Entertainment
Publications.
Alliance Entertainment Publications has created
and released high quality, full-color, fan-focused Collectible
Magazines, known in the industry as Bookazines, which are the
fastest growing segment in magazine publishing. They will be sold
through Alliance Entertainment’s extensive distribution network,
including Customer Direct Fulfillment (“CDF”), through Alliance’s
proprietary direct-to-consumer mail order print catalogs and
websites, and to thousands of independent retailers and wholesale
accounts. They will also be distributed to select retail
destinations such as Barnes & Noble and Books-A-Million,
further expanding to include big box retailers and grocery chains
in 2024.
These new publications are branded under the
Alliance Entertainment-owned entities of Movies Unlimited (founded
in 1978), Critics’ Choice Video (founded in 1987) and Collectors’
Choice Music (founded in 1993). These legacy brands have been
leaders in selling media and collectibles directly to consumers for
decades via specially curated mail order print catalogs and
websites and have decades of expertise earned in the entertainment
industry.
“Alliance Entertainment acquired Collectors’
Choice Music and Critics’ Choice Video in 2010 and Movies Unlimited
in 2015, as a way to grow our existing customer base and to tap
into new avenues of sales,” said Jeff Walker, CEO and CFO of
Alliance Entertainment. “At the same time, we acquired a team of
dedicated and talented long-time employees, many of whom worked on
these brands since the beginning. These new Collectible Magazines
will be written and designed by these same long-time employees,
utilizing their decades of institutional knowledge of Movies, TV
and Music.”
“This new product line is a very exciting
opportunity for us,” said Tim Hinsley, SVP of Retail Sales at
Alliance Entertainment and Publisher of Alliance Entertainment
Publications. “Our brands have been working hard to branch out from
just selling shiny discs such as DVDs and CDs by expanding into
offering more movie and music related collectibles. What better way
to grow that business than to create our own high quality
publications that appeal directly to the interests of our current
customer base and beyond.”
Rob Terry, Sr., Director of Merchandising at
DirectToU LLC and Editor-in-Chief of Alliance Entertainment
Publications, stated, “We are more than thrilled that our team can
now share our earned expertise in entertainment with our customers
in a new way. We guarantee that our passion and fandom will
show through in these publications and the topics we cover.”
The first 3 issues, available now, are
Collectors’ Choice Music Presents Willie Nelson & the Legends
of Outlaw Country, Critics’ Choice Video Presents Great Comedy
Teams Volume 1 (1922-1969) and The Movies Unlimited Essential Guide
to Star Trek. Upcoming releases include Collectors’ Choice Music
Presents The British Invasion, Critics’ Choice Video Presents Great
TV Detectives and The Movies Unlimited Guide to 1970s Horror.
About DirectToU LLC
DirectToU LLC (“DTU”), a division of Alliance
Entertainment, is the retail brand-centric home for all things
entertainment. Led by in-house brands Critics’ Choice,
DeepDiscount, Movies Unlimited, Collectors’ Choice, popmarket and
WowHD, DTU retails Alliance’s vast variety of products across
in-house websites, mail-order catalogs, third party marketplaces
(including Amazon, Walmart and eBay), social media (including
Facebook and TikTok) and specialty retailers (including Urban
Outfitters and Discogs). With a successful retail history dating to
1978, DTU boasts a dedicated and well-renowned team of experts in
the Film, TV, Music, Gaming and Collectibles industries, acting as
a vital bridge between the creative community and their legion of
fans.
About Alliance
Entertainment
Alliance Entertainment (NASDAQ: AENT) is a
premier distributor of music, movies, toys, collectibles, and
consumer electronics. We offer over 375,000 unique in stock SKU’s,
including over 57,300 exclusive compact discs, vinyl LP records,
DVDs, Blu-rays, and video games. Complementing our vast media
catalog, we also stock a full array of related accessories, toys
and collectibles. With more than thirty-five years of distribution
experience, Alliance Entertainment serves customers of every size,
providing a robust suite of services to resellers and retailers
worldwide. Our efficient processing and essential seller tools
noticeably reduce the costs associated with administrating multiple
vendor relationships, while helping omni-channel retailers expand
their product selection and fulfillment goals. For more
information, visit www.aent.com.
Forward Looking Statements
Certain statements included in this Press
Release that are not historical facts are forward-looking
statements for purposes of the safe harbor provisions under the
United States Private Securities Litigation Reform Act of 1995.
Forward-looking statements generally are accompanied by words such
as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,”
“intend,” “expect,” “should,” “would,” “plan,” “predict,”
“potential,” “seem,” “seek,” “future,” “outlook,” and similar
expressions that predict or indicate future events or trends or
that are not statements of historical matters. These
forward-looking statements include, but are not limited to,
statements regarding estimates and forecasts of other financial and
performance metrics and projections of market opportunity. These
statements are based on various assumptions, whether identified in
this Press Release, and on the current expectations of Alliance’s
management and are not predictions of actual performance. These
forward-looking statements are provided for illustrative purposes
only and are not intended to serve as and must not be relied on by
an investor as, a guarantee, an assurance, a prediction, or a
definitive statement of fact or probability. Actual events and
circumstances are difficult or impossible to predict and will
differ from assumptions. Many actual events and circumstances are
beyond the control of Alliance. These forward-looking statements
are subject to a number of risks and uncertainties, including risks
relating to the anticipated growth rates and market opportunities;
changes in applicable laws or regulations; the ability of Alliance
to execute its business model, including market acceptance of its
systems and related services; Alliance’s reliance on a
concentration of suppliers for its products and services; increases
in Alliance’s costs, disruption of supply, or shortage of products
and materials; Alliance’s dependence on a concentration of
customers, and failure to add new customers or expand sales to
Alliance’s existing customers; increased Alliance inventory and
risk of obsolescence; Alliance’s significant amount of
indebtedness; our ability to refinance our existing indebtedness;
our ability to continue as a going concern absent access to sources
of liquidity; risks and failure by Alliance to meet the covenant
requirements of its revolving credit facility, including a fixed
charge coverage ratio; risks that a breach of the revolving credit
facility, including Alliance’s recent breach of the covenant
requirements, could result in the lender declaring a default and
that the full outstanding amount under the revolving credit
facility could be immediately due in full, which would have severe
adverse consequences for the Company; known or future litigation
and regulatory enforcement risks, including the diversion of time
and attention and the additional costs and demands on Alliance’s
resources; Alliance’s business being adversely affected by
increased inflation, higher interest rates and other adverse
economic, business, and/or competitive factors; geopolitical risk
and changes in applicable laws or regulations; risk that the
COVID-19 pandemic, and local, state, and federal responses to
addressing the pandemic may have an adverse effect on our business
operations, as well as our financial condition and results of
operations; substantial regulations, which are evolving, and
unfavorable changes or failure by Alliance to comply with these
regulations; product liability claims, which could harm Alliance’s
financial condition and liquidity if Alliance is not able to
successfully defend or insure against such claims; availability of
additional capital to support business growth; and the inability of
Alliance to develop and maintain effective internal controls.
For investor inquiries, please
contact:MZ GroupChris Tyson/Larry
Holub(949) 491-8235AENT@mzgroup.us
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/3156ccc8-7d87-45c1-aa76-315e8619cf0a.
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