Saunders Leaves Redbox10 Dec, 2013 By: Chris Tribbey
Redbox Dec. 10 announced its president, Anne Saunders, has left the company, with J. Scott Di Valerio, CEO of parent company Outerwall, taking over on an interim basis until a permanent replacement can be found.
“I am confident in the future of Redbox and the Redbox executive leadership team which will continue its work to drive the business and ensure a smooth transition to the next president,” Di Valerio said. “We are making progress with our initiatives to drive incremental rentals by continuing to provide new releases and interesting content at a great value to our consumers, generating value for our company and our retail partners. I want to thank Anne for her contributions at Redbox.”
Saunders first came on board with Redbox in late August 2012, taking over for Gregg Kaplan, who helped launch the kiosk company in 2002.
Outerwall also announced it would discontinue three new venture concepts, Rubi coffee kiosks, Crisp Market kiosks and the photo booth service Star Studio, all by the end of the first quarter of 2014.
Outerwall expects to save $22 million annually with the loss of 251 jobs, or 8.5% of its workforce.
“These actions are consistent with the plans we outlined earlier this year and ensure that Outerwall’s operations drive enhanced value creation for both our shareholders and retail partners," Di Valerio said. “This comprehensive review reaffirms our confidence in Outerwall’s solid foundation, notably our core Coinstar and Redbox businesses and the company's strong cash flows.”
Eric Wold, analyst with B. Riley & Co. in Los Angeles, said the cuts are “a positive move that will allow for a realignment of both spending levels as well as management’s focus towards the core kiosk concepts.”
“As Redbox and Coinstar growth rates continue to slow — and competitive issues lessen — not only do we believe this provides opportunities to find additional cost savings, but a consolidated operating system could provide field service synergies as well,” he wrote in a note to investors, noting that Redbox financial guidance for the fourth quarter remains unchanged.