ShopNBC Announces Cost Reduction Actions
January 07 2009 - 4:05PM
Marketwired
ShopNBC (NASDAQ: VVTV), the premium lifestyle brand in electronic
retailing, today announced cost reduction actions for fiscal 2009.
These actions include an organizational restructuring and an update
on the renewal of its cable and satellite distribution agreements.
The Company said it has restructured its organization and taken
other cost reduction actions to bring greater focus on
profitability, accountability and efficiency in key business units.
As a result, the Company's salaried work force was reduced by
approximately 11%, which is effective immediately. This represents
a total reduction in the salaried workforce of 27% from fiscal
2007. Impacted team members were offered competitive severance and
outplacement services. Additionally, the Company will suspend its
401(k) match for fiscal 2009, and there will be a salary freeze
with no merit pay increases in the coming fiscal year.
"The steps taken to resize our organization for 2009 are
difficult but necessary," said Keith Stewart, President and COO of
ShopNBC. "Going forward, we will continue to aggressively explore
and implement all appropriate cost reduction measures. By reducing
our cost structure today, we will be able to focus on our long-term
objectives of better serving our loyal customers and achieving
profitable growth."
The Company also reported it is making meaningful progress on
the renewal of its cable and satellite distribution agreements. To
date, the Company has renegotiated agreements covering 18 million
homes and achieved competitive rates for these homes. The Company
remains in ongoing negotiations with cable operators that represent
the majority of the households currently up for renewal and expects
to provide a more complete status update before the end of this
month.
Added Stewart, "We are pleased with how our negotiations are
proceeding. To date, we have been successful in preserving our
distribution footprint, which is important for our future growth as
these homes are like our stores. We are maintaining strong
relationships with our distribution partners and believe that we
will be able to reach mutually beneficial agreements with most of
our cable providers."
About ShopNBC
ShopNBC is a multi-channel electronic retailer operating with a
premium lifestyle brand. The shopping network reaches 72 million
homes in the United States via cable affiliates and satellite: DISH
Network channel 228 and DIRECTV channel 316. www.ShopNBC.com is
recognized as a top e-commerce site. ShopNBC is owned and operated
by ValueVision Media (NASDAQ: VVTV). For more information, please
visit www.ShopNBC.com/IR.
Forward-Looking Information
This release contains certain "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements are based on management's current
expectations and accordingly are subject to uncertainty and changes
in circumstances. Actual results may vary materially from the
expectations contained herein due to various important factors,
including (but not limited to): consumer spending and debt levels;
interest rates; competitive pressures on sales, pricing and gross
profit margins; the level of cable distribution for the Company's
programming and the fees associated therewith; the success of the
Company's e-commerce and rebranding initiatives; the performance of
its equity investments; the success of its strategic alliances and
relationships; the ability of the Company to manage its operating
expenses successfully; risks associated with acquisitions; changes
in governmental or regulatory requirements; litigation or
governmental proceedings affecting the Company's operations; and
the ability of the Company to obtain and retain key executives and
employees. More detailed information about those factors is set
forth in the Company's filings with the Securities and Exchange
Commission, including the Company's annual report on Form 10-K,
quarterly reports on Form 10-Q, and current reports on Form 8-K.
The Company is under no obligation (and expressly disclaims any
such obligation) to update or alter its forward-looking statements
whether as a result of new information, future events or
otherwise.
Contacts: Frank Elsenbast Chief Financial Officer 952-943-6262
Anthony Giombetti Media Relations 612-308-1190
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