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Tuesday, Feb 7, 2023

Image Cost Cutting Hits Employees, Contracts

Image Entertainment Inc. cut 30 percent of its workforce and renegotiated vendor contracts as part of a restructuring program by its new management. Those two moves are expected to bring about $10 million in savings to the Chatsworth-based home entertainment programming producer and distributor. “We are now more streamlined, cost aligned and positioned for future growth,” said Chairman and CEO Ted Green. “While these changes are difficult overall, they are needed for the long-term viability of the company.” Image has struggled over the past year as consumer demand for DVDs plummeted in the face of the recession. The company also dealt with a botched merger, defaulting on a $4 million payment on a convertible note, and delisting from NASDAQ. In January, affiliates of private equity firm JH Partners became majority owners of Image that led to a change in the executive team. Shares purchased by the affiliates allowed Image to pay off lingering debt. Mark R. Madler

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