UAV Distribution Folds28 Jun, 2006 By: Jessica Wolf
Longtime distributor United American Video (UAV) is no more.
The South Carolina-based VHS, DVD and CD distributor that launched in the mid-1980s shuttered its distribution division this month.
In two rounds of layoffs, June 11 and June 13, UAV let go 293 employees from the company's distribution side, keeping just 41 staffers to run UAV's smaller, but more profitable, content division. Joe Duey is serving as UAV president.
That side of the business, which licenses non-Hollywood video product and releases it into major retail chains, was in the throes of a sale, which would have boosted UAV's distribution side.
That deal fell through the week of June 11 and the layoffs came “very unexpectedly,” to the affected employees, said Joel Goldstein, media relations representative for UAV.
“The collapse of the sale was very unexpected,” he added.
Meanwhile, the company is still looking for a buyer for the content side of the business, and is “in negotiations with several potential buyers,” Goldstein said.
A sale needs to happen quickly, as the company has been running in default of lending agreements for months now, Larry Nowak, UAV president and CEO wrote in a June 20 memo to employees.
The company is using its Web site, www.uavco.com, to keep former employees apprised of company status as well as health and vacation benefits still available to them.