Entertainment One restructures music unit
Tough economic times have forced Canuck producer, distributor and music company Entertainment One to restructure its U.S. music operations and postpone its listing on the Toronto stock exchange.
Entertainment One will lay off approximately 30 of its 250 staffers at E1 Music Stateside.
E1 Music — formerly known as Koch — is the largest independent distributor and record label in the U.S. Most of the layoffs will happen at its Port Washington, Long Island headquarters.
As for the listing, Entertainment One CEO Darren Throop said that the company “came to the conclusion late last week that it didn’t make sense based on macroeconomic conditions.”
Throop said he hopes to obtain a Toronto stock listing under more positive market conditions.
But he stressed that the delay is not a reflection of problems at Entertainment One. The company just garnered boffo box office in Canada and the U.K. with “Twilight,” and sequel “New Moon” is slated for release this year.
E1 Music restructuring is due to the downturn in CD sales. But Throop said music remains important for the company, particularly given the opportunity to tie in movie releases and soundtracks.