Navarre Shutters BCI Eclipse17 Dec, 2008 By: Erik Gruenwedel
Citing rapidly changing conditions in the licensed and budget DVD markets, Navarre Corp. Dec. 17 said it would shut down operations of BCI Eclipse and continue distributing exclusive BCI titles internally through Navarre Distribution Services.
Key third-party brands include UFC, TNA Entertainment, Fall Thru, Retroactive, Sangin, Code Red, Lichtung Media, Marvelous Media and Xtreme Entertainment.
The restructuring could affect about a dozen BCI employees, including write down of assets and severance costs for the fiscal quarter ending Dec. 31. Navarre made no comment about specific staff reductions except that BCI president Bob Freese would assist in the restructuring.
Navarre last year shuttered BCI’s Los Angeles operations (except for an acquisitions office) and relocated select management to its Minneapolis corporate office, among other changes.
The move is not a surprise as Navarre CEO Cary Deacon recently characterized BCI’s results as “disappointing.”
"To deal with the effect of the recession, we are moving quickly to decrease expenses in all areas of our business,” Deacon said, in a statement. “We are closing BCI's licensing unit in order to position our overall business for enhanced financial results upon the improvement of macro economic conditions."
Navarre reported net income of $5.3 million on revenue of $143 million in the most recent quarter.