NEW YORK, Aug. 10, 2015 /PRNewswire/ -- Filmed Entertainment Inc. announced today that the Company has filed a petition for relief under Chapter 11 of the U.S. Bankruptcy Code to pursue an orderly sale of its Columbia House DVD Club business, a direct-to-customer distributor of movies and television series in the United States. The Company was historically active in the musical compact disc business, but exited the music business in 2010.
The business has been in decline for approximately two decades, driven by the advent of digital media and resulting declines in the recorded music business and the home-entertainment segment of the film business. Columbia House's revenues peaked in 1996 at approximately $1.4 billion and declined in almost every year since then. In 2014, the Company's net revenues were $17 million.
After careful consideration, and with recognition of the continued decline in the physical DVD market, the Company has determined that the best course forward to maximize value is to sell the business through an open auction process under section 363 of the U.S. Bankruptcy Code. Since late 2014, PriceWaterhouse Coopers ("PWC"), the Company's financial and restructuring advisor, has conducted a process of identifying and contacting potential purchasers and investors.
All operations are expected to continue throughout the process, and the Company will continue to service its members and sell DVDs.
The Chapter 11 petition was filed in the U.S. Bankruptcy Court for the Southern District of New York (Manhattan).
About Filmed Entertainment Inc.
Filmed Entertainment Inc. is the owner of Columbia House DVD Club, a direct-to-consumer distributor of movies and television series in the United States.
SOURCE Filmed Entertainment Inc.