RLJ Entertainment Licenses Acorn Retail Biz to Universal Screen Arts6 Jul, 2016 By: Erik Gruenwedel
RLJ Entertainment July 6 announced its has licensed its Acorn-branded catalog and online retail business to Universal Screen Arts. The Hudson, Ohio-based USA e-commerce and mail order company will manage day-to-day catalog, website operations and fulfillment under the Acorn brand.
“We believe there is a strong alignment between our brands, our customer base and the products we sell both online and in our catalog. Acorn and Signals catalogs are synergistic and Universal Screen Arts is the ideal company to manage the promotion and fulfillment of our products because of their breadth and experience in the direct-to-consumer space,” Miguel Penella, CEO of RLJ Entertainment, said in a statement.
USA markets a wide range of consumer products direct to the consumer via catalogs, websites, digital marketing and Internet. Product categories range from apparel, home decor, fine jewelry, footwear, books and accessories to health and beauty products.
"We look forward to being able to offer our eclectic assortment of unique gifts to the Acorn customers and the Acorn DVD's to our customer base. We expect to leverage our capabilities in digital and catalog marketing to increase the Acorn Direct revenues and customer file,” said Ken Harris, CEO of USA.
RLJ Entertainment, which formed in 2012 with the acquisition/merger of Image Entertainment and Acorn Media, has been undergoing internal restructuring in an effort to cut costs and appease investors.
The distributor, which operates subscription streaming video services Acorn TV and Urban Movie Channel, in May appointed a new CFO, and in June implemented a 1-for-3 reverse stock split of its common stock. The move was done to avoid delisting by Nasdaq after shares closed below $1 for 30 consecutive business days.
Company shares closed July 6 up more than 26% at $2.40 per share.