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Redbox files lawsuit against Universal; new rules impede redbox’s DVD rental business

BY Jenna Duncan

OAKBROOK TERRACE, Ill. Redbox automated DVD rental has filed a lawsuit against against Universal Studios Home Entertainment plus three Universal affiliates in a in Delaware Federal Court Oct. 10, alleging that Universal’s new distribution terms would block redbox from being able to rent out Universal Studios DVD titles for 45 days following public release.

Universal’s new terms also limit how many of its DVD titles each redbox kiosk may stock, and has a condition that redbox can’t sell used Universal DVDs, but must destroy them, redbox complained.

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Kimberly-Clark names new director of global marketing

BY Jenna Duncan

IRVING, Texas Mark Kaline has been named to the Kimberly-Clark management team to serve in a new position—global media director, the company said Tuesday. Kaline officially takes his chair Oct. 20.

The Global Marketing Organization at Kimberly-Clark, which was formed last April,  directs attention towards global brand-building and instituting and perpetuating best practices in its business divisions, the company said.

Kaline joins Kimberly-Clark’s global marketing team after working for Ford Motor Company as online and traditional media buying manager for about 11 years. He also worked for Ford’s consolidated media operations in Canada, Europe and Mexico and created the Branded Entertainment Group at Ford.

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A&P reports sales for Q2, plans some adjustments for acquired Pathmark stores

BY Antoinette Alexander

MONTVALE, N.J. A&P acknowledged that its second quarter results were challenged by the acquired Pathmark stores but the grocer maintains that the integration is on track.

“Top line results and retail fundamentals were quite favorable in all formats with adjusted EBITDA ahead of prior year. However, even though Price Impact Pathmark stores experienced very strong top line performance with strong comp store sales and improved market share, overall earnings were below management expectations driven by a gross margin shortfall in that format. Most of this shortfall relates to Pathmark transition issues for which corrective actions have already been taken so that they do not occur again,” said Eric Claus, president and chief executive officer.

The company noted that the Pathmark integration is on track as it has realized about $25 million of synergies during the quarter, comprised of reduced administrative costs, reduced merchandise costs as well as reductions in store operating, marketing and advertising costs. At the end of the second quarter, the run rate of synergies was about $120 million or about 80 percent of the original target of $150 million.

Sales for the second quarter were $2.2 billion versus $1.3 billon last year. Same-store sales, which excludes sales for Pathmark acquired in December 2007, rose 2.8 percent. Pathmark’s same-store sales increased 2.9 percent.

Net loss from continuing operations was $3.6 million compared with a loss of $2.9 million in the year-ago period. Prior year?s results exclude the results of Pathmark prior to the date of acquisition.

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