Borshell Upped to Image Prez1 Apr, 2008 By: Erik Gruenwedel
Image Entertainment Inc. April 1 said COO David Borshell has replaced founder and CEO Martin Greenwald as president of the Chatsworth, Calif.-based distributor.
Borshell reports directly to the board led by chairman Greenwald. Image does not plan to seek a replacement CEO.
Borshell is not retaining the COO position, and a successor has yet to be named.
The veteran executive joined Image in 1984 and was SVP, sales, marketing and operations from 1995 to 2000 until being named COO.
Greenwald said Borshell helped Image establish its digital distribution subsidiary, Egami Media, its relationship with the Criterion Collection and establishment of international business, among other accomplishments.
“The time is right for me to hang up my cleats,” Greenwald said.
Borshell has withered a tumultuous few years for Image that included a hostile takeover attempt by former second-largest shareholder Lionsgate and the subsequent failed acquisition by BTP Acquisitions Co., headed by financier and producer David Bergstein.
The unsuccessful deal resulted in Wall Street turning its back on Image and a precipitous stock price decline with one analyst calling out Greenwald for overseeing a “$50 million” loss in shareholder value.
Image lost $2 million in the last quarter on revenue of more than $27 million.
Despite the tumult, Borshell helped salvage Image's distribution deal with T1 Holdings LLC for new and catalog ThinkFilm theatrical titles, including Sidney Lumet's Before the Devil Knows You're Dead, which streets April 15 on DVD ($27.98) and Blu-ray ($35.98).
“The past couple of years have been trying times for shareholders, customers, business partners and employees alike,” Borshell said. “With this in mind, the entire Image team is dedicated to bringing Image back to growth and profitability during the new fiscal year.”
Separately, the company plans to hold a shareholder conference call next week to discuss future plans.
Finally, Borshell confirmed the promotion was not an April Fool's prank.