Navarre Corp. issued a press release
yesterday (shown in full, below) stating that they are closing the doors on their wholly-owned division BCI Eclipse. Calls to BCI seeking comment and answers to questions were not answered, and a message left at Navarre was not immediately returned.
BCI is well-known among TV-on-DVD fans for releases of the classic Filmation library that includes He-Man, She-Ra, BraveStarr, Isis, The Original Ghost Busters, Space Academy, Jason of Star Command
and Ark II
. They're also known for DVD releases of the 2002 Mattel-owned He-Man
remake, Day Break
, the ABC Afterschool Specials
, Wanted: Dead or Alive
, ABC Family's Falcon Beach
, Mutual of Omaha's Wild Kingdom
, Disney's Dungeons & Dragons
and game show Best-of's that include The Price is Right, Match Game, Family Feud
. They've also done a few releases on Blu-ray Disc, including the recent Live from Abbey Road - The Best of Season 1
. A list of TV shows they released product for, including links to lists of releases for each program and links to purchase the available titles from Amazon or DVDEmpire (while they are available), can be found here
BCI has had a number of upcoming titles that were in the works, including Andy Barker P.I.
and What's My Line?
. As recently as two days ago we were in touch with BCI employees about the latest plans for these releases, including a hopefully short delay to March plans for Line
. Now the fate of these upcoming titles is unknown. Navarre could potentially release these (and continue to release previous BCI titles still under license to Navarre) via their other DVD publishing division, Funimation, but that area has always focused primarily on the anime sector (although they also have released non-animated product in the past, such as Degrassi: The Next Generation
...but that property is now with another company). The press release indicates that Navarre will be releasing certain of the product directly, but doesn't name which releases that would be. If we find out what's happening with any of the individual titles, we'll certainly let you know, so stay tuned. Our thanks to reader Mark Talmadge for making sure we're aware about this. Here is the official press release about BCI's shuttering:
Navarre Corporation Announces
The Closure of Its BCI Operation
MINNEAPOLIS, Dec. 17 /PRNewswire-FirstCall/ -- Navarre Corporation (Nasdaq: NAVR) announced today that BCI Eclipse Company, its wholly-owned subsidiary, will shut down its licensing operations in connection with the implementation of a restructuring plan. This restructuring will include a workforce reduction, a write down of assets and the incorporation of BCI's exclusively distributed DVD business into the company's distribution segment.
Cary Deacon, Navarre's Chief Executive Officer, commented, "To deal with the effect of the recession, we are moving quickly to decrease expenses in all areas of our business. BCI's operations have been unprofitable for the past two years. Although strides have been made this year to improve operating results, it has been mainly due to the strength of BCI's exclusive distribution business. Rapidly changing conditions in the licensed and budget DVD markets during this holiday sales season have prompted us to make more fundamental changes. In response, we are closing BCI's licensing unit in order to position our overall business for enhanced financial results upon the improvement of macro economic conditions."
Deacon continued, "We continue to be very excited about the DVD content that will now be exclusively sold and marketed through Navarre Distribution Services. These changes will allow us to focus our efforts on growing the sales of the DVD content that is most appealing to our retail customers and consumers. Mr. Bob Freese will be the executive in charge of this restructuring and will be responsible for the smooth transition of our BCI distribution partners."
The company indicated that its financial results for the fiscal 2009 third quarter, ending December 31, 2008, will include a significant charge related to the impairment of the carrying value of certain balance sheet assets and in connection with severance costs. This restructuring is expected to be substantially complete by the end of January 2009 and is a part of the company's strategy to reduce its overall cost structure.
About Navarre Corporation
Navarre(R) Corporation (Nasdaq: NAVR) is a publisher and distributor of physical and digital home entertainment and multimedia products, including PC software, DVD video, video games and accessories. Navarre licenses and publishes home entertainment and multimedia content and has established distribution relationships with customers across a wide spectrum of retail channels. Navarre was founded in 1983 and is headquartered in New Hope, Minnesota. Additional information regarding Navarre can be found at http://www.navarre.com.