Producers Distribution Services plans to distribute B movies on cassette directly to vidstore chains, bypassing traditional distributors. The startup company is wholly owned by Roger Reese, who had been involved in the launch of Academy Entertainment in the mid-’80s.

Reese said he is structuring deals with producers in which there is no advance but the producer is guaranteed half the adjusted gross sales. Wholesale price per unit is $20. He estimates breakeven on most titles will be 5,000 units.

Having secured rights to 17 titles, PDS plans to begin advertising the first – “Fists Of Steel,” from producer Patrick Shannon – this month. Other titles include “Serpent Warriors” and “Ninja Grand Master Of Death.”

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