Investment Date
August 2010
Vertical
Media & Entertainment
Fund
GCP II
Investment Status
Prior
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Alliance Entertainment

The largest wholesale distributor of CD, DVD and videogame titles in the United States, providing distribution, fulfillment and other services to such retailers as Barnes & Noble, Amazon.com, Target.com and BestBuy.com


Highlights

  • Manages a physical inventory of 400,000 CD, DVD and videogame titles in its state-of-the-art distribution center in Shepherdsville, KY
  • Ships to 14,500 locations throughout the United States and has 2,900 unique customers
  • Provides high level service in eCommerce fulfillment (CDF), vendor managed inventory systems, category captain analysis and processes, traditional retail distribution and 3PL functions

Initiatives

  • Acquired and successfully integrated first competitor acquisition, Edge
  • In May 2012, acquired Audiolife
  • Augmented senior management in order to largely focus on sales and marketing
  • Revamped back office IT architecture
  • Reduced capacity to current demand and renegotiated materials and logistics contracts
  • In 2010, reduced costs by $8 million
  • Carved out from parent company, Source Interlink, in August 2010; sold to Super D in September 2013