MUSIC NEWS - In another sign of the weakening cd and dvd market, USA cd/dvd distributor, Alliance Entertainment LLC announced that it plans to shut its warehouse in Coral Springs, Florida and lay off 462 employees, effective March 16. According to its Web site, Alliance, a division of Bonita Springs-based Source Interlink Cos., is the largest independent wholesaler of DVDs and CDs in North America. Source Interlink, which merged with Alliance in 2005, services about 110,000 retail store locations throughout North America. The bulk of
the layoffs; 333 – are warehouse workers. This follows on Alliance's recent announcement that they will let go about 15 employees, including a sales director, and was planning move out all of the remaining Innovative Distribution Network staff, which will effectively shut down its independent record label operation, according to several executives at IDN distributed music labels. Alliance supplied product to Circuit City stores and was impacted by CC closure and the overall decline of cd & dvd sales. No word on how this will effect other Alliance clients, notably NYC based Barnes & Noble
UPDATE 4/29/09 - See news on Chapter 11 filing by Alliance parent company, Source Interlink
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