U.S. music biz distributor Alliance Entertainment will further the consolidation it began earlier this year by merging its Santa Fe Springs warehouse operations into its Coral Springs, Fla., facility. More than 150 staffers will be pink-slipped as a result of the move.
Alliance will still maintain a West Coast presence by shifting its local efforts through its Abbey Road Distributors facility in L.A. Abbey Road is a member of Alliance’s One-Stop Group of companies.
Shipments from the Santa Fe Springs warehouse are expected to cease by Jan. 17 and all remaining warehouse activities will be transferred to Coral Springs by Feb. 28.
“Management has developed an aggressive business plan aimed at streamlining operations and maximizing operational efficiencies,” said Eric Weisman, prexy and CEO of Alliance. “This move, along with several other actions we have taken in the past few months, will further solidify the foundation for our successful emergence from Chapter 11.”
According to Weisman, Alliance’s “sales operation will remain in place, and customers can be assured that there will be no interruption in their service.” Earlier this month, Weisman replaced Al Teller at Alliance’s helm.
The ankling put an end to Teller’s goal of building the industry’s seventh major music distribution company. In its heyday, Alliance was the largest distributor of independent label product.
The Florida facility — an $8 million, 240,000-square-foot distribution center — opened in October 1996 and has since served as the nerve center for Alliance’s One-Stop Group.
All of Alliance’s finance, purchasing, sales, marketing, creative services and information technology will now be managed from the facility, which boasts around 550 of the company’s 1,100 employee worldwide workforce.
Alliance execs continue to search for suitors for its Concord and Castle subsidiaries as a way of further paring down debt and shoring up assets. It sold its Red Ant Entertainment arm in August.