iMedia Restructures Organization to Improve ShopHQ On-Air Programming
February 05 2020 - 5:50PM
iMedia Brands, Inc. (Nasdaq: IMBI) today announced it completed an
organizational restructuring in January 2020 to improve the
performance of ShopHQ’s on-air programming and accelerate the
company’s return to profitability.
“We are nine months into our turnaround plan,”
said Tim Peterman, CEO of iMedia Brands, “and as our culture
becomes more entrepreneurial each day, we are finding faster ways
to improve our underperforming areas. Our next innovation centers
on improving the quality, variety and consistency of our on-air
programming. I’m proud of how we implemented three key
changes, explained below, to drive innovation for the benefit of
our customers, employees, and shareholders.”
- Introduced a “fixed” program calendar with weekly
static shows – Historically, ShopHQ’s programming strategy
attempted to optimize every minute of every hour, which required
the organization to constantly change its program calendar. Over
time, this program strategy unintentionally drove a pronounced
ShopHQ viewership and revenue decline and required a large ShopHQ
infrastructure to execute.We believe television retailing customers
prefer predictable routines of watching shows with their favorite
hosts, their favorite categories, and at their favorite times of
day. Therefore, this past fall/holiday season, ShopHQ tested on-air
how best to implement a fixed calendar strategy. Utilizing
these learnings, on March 1, 2020, ShopHQ will launch its
first-ever “fixed” program calendar.
- Aligned merchandising teams and on-air
producers – Historically, ShopHQ’s go-to-market process
for a product was performed through a series of complicated
internal “hand-offs” among six departments that often resulted in
inconsistencies, delays and incompleteness. In January, the company
restructured to establish dedicated producing teams for each
category that will be led by that category’s merchant GMM -- who
knows best how their category’s products and stories should be
communicated to customers.
- Redesigned organization to implement this
innovation – In January 2020, management restructured the
organization and estimates it removed $15 million in annual costs,
including $10.5 million in salaries and benefits. In addition,
effective January 30, 2020, Michael Porter, the company’s CFO, has
departed the company. Tim Peterman, the company’s CEO, who
served as the company’s CFO & COO in 2016 and 2017, has been
appointed interim-CFO until such time the company names the new
permanent CFO.
About iMedia Brands, Inc.
iMedia Brands, Inc. (NASDAQ: IMBI) is a global
interactive media company that manages a growing portfolio of
niche, lifestyle television networks and media services. Its
brand portfolio spans multiple business models and product
categories and includes ShopHQ, Bulldog Shopping Network and iMedia
Media Services. Please visit www.imediabrands.com for more investor
information.
Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995
This document contains certain “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. Any statements contained herein that are not
statements of historical fact, including statements regarding the
savings from cost reductions, expected advantages of restructuring
and operational changes, industry prospects, changes in the program
calendar format, or future results of operations or financial
position are forward-looking. The company often use words such as
anticipates, believe, estimate, expect, hope, intend, plan,
predict, schedule, seek, should, will and similar expressions to
identify forward-looking statements. These statements are based on
management’s current expectations and accordingly are subject to
uncertainty and changes in circumstances. Actual results may vary
materially from the expectations contained herein due to various
important factors, including (but not limited to): variability in
consumer preferences, shopping behaviors, spending and debt levels;
the general economic and credit environment; interest rates;
seasonal variations in consumer purchasing activities; the ability
to achieve the most effective product category mixes to maximize
sales and margin objectives; competitive pressures on sales and
sales promotions; pricing and gross sales margins; the level of
cable and satellite distribution for the company’s programming and
the associated fees or estimated cost savings from contract
renegotiations; the company’s ability to establish and maintain
acceptable commercial terms with third-party vendors and other
third parties with whom the company has contractual relationships,
and to successfully manage key vendor and shipping relationships
and develop key partnerships and proprietary and exclusive brands;
the ability to manage operating expenses successfully and the
company’s working capital levels; the ability to remain compliant
with the company’s credit facilities covenants; customer acceptance
of the company’s branding strategy and its repositioning as a video
commerce company; the ability to respond to changes in consumer
shopping patterns and preferences, and changes in technology and
consumer viewing patterns; changes to the company’s management and
information systems infrastructure; challenges to the company’s
data and information security; changes in governmental or
regulatory requirements; including without limitation, regulations
of the Federal Communications Commission and Federal Trade
Commission, and adverse outcomes from regulatory proceedings;
litigation or governmental proceedings affecting the company’s
operations; significant events (including disasters, weather events
or events attracting significant television coverage) that either
cause an interruption of television coverage or that divert
viewership from its programming; disruptions in the company’s
distribution of its network broadcast to customers; the company’s
ability to protect its intellectual property rights; our ability to
obtain and retain key executives and employees; the company’s
ability to attract new customers and retain existing customers;
changes in shipping costs; expenses related to the actions of
activist or hostile shareholders; the company’s ability to offer
new or innovative products and customer acceptance of the same;
changes in customer viewing habits of television programming; and
the risks identified under Item 1A(Risk Factors) in the company’s
most recently filed Form 10-K and any additional risk factors
identified in its periodic reports since the date of such Form
10-K. More detailed information about those factors is set forth in
the company’s filings with the Securities and Exchange Commission,
including its annual report on Form 10-K, quarterly reports on Form
10-Q, and current reports on Form 8-K. Investors are cautioned not
to place undue reliance on forward-looking statements, which speak
only as of the date of this announcement. the company’s is under no
obligation (and expressly disclaim any such obligation) to update
or alter its forward-looking statements whether as a result of new
information, future events or otherwise.
Contacts:
Media:MyLinh Hong press@imediabrands.com (800)
938-9707
Investors:Gateway Investor RelationsCody
SlachIMBI@gatewayir.com(949) 574-3860
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