Alliance Distributors Loses Sony Deal
April 12, 2010 (FinancialWire) — Alliance Distributors Holding Inc. (OTC: ADTR), a distributor of interactive video games and gaming products, said that Japanese electronics giant Sony (NYSE: SNE) has terminated the company's distributorship effective May 1.
Alliance said it believes that Sony's decision reflects a change in its general distribution strategy.
Jay Gelman, chairman and CEO of Alliance, said that Sony has reduced its allocation of console units to the company over the last year. As a result, purchases from Sony, which Gelman said accounted for 44% of Alliance’s total purchases in 2008, declined to 23% of total purchases in 2009.
Gelman said that Alliance has responded by purchasing increasing amounts of Sony products in the general market and by continuing a strategy of dedicating more purchasing dollars to higher margin value business.
New York-based Alliance Distributors is a wholesale videogame distributor, specializing in gaming products and accessories for various manufacturers and 3rd party publishers.
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