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iMedia Restructures Organization to Improve ShopHQ On-Air Programming

02/05/2020
Announces Estimated $15 Million Reduction in Annual Costs and CFO Transition

MINNEAPOLIS, Feb. 05, 2020 (GLOBE NEWSWIRE) -- 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.”

  1. 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.

  2. 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.

  3. 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 Relations
Cody Slach
IMBI@gatewayir.com
(949) 574-3860

 

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Source: iMedia Brands, Inc.

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