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Crown Video Reorganizes

In an undated letter we received yesterday, Brad Mix of Christian DVD distributor Crown Video reported that its parent company, Precision Sound Corp. of Edmonton,  is in receivership and that “everything” — inventory and presumably distribution contracts — is being transferred to Word Alive in Winnipeg.  

The letter tries to clarify the relationship between Precision Sound and Crown, in one paragraph stating:

Although our parent company has gone into bankruptcy, as of now, Crown Entertainment has not. We were, however, sharing offices, warehouse, receptionist, shipping/receiving etc.

But in the next stating:

Since Precision Sound owned 100% of Crown Entertainment, Crown is now ultimately controlled by the Trustee in Bankruptcy.

The announcement is also unclear on the future of Crown vis-a-vis the new relationship with Word Alive:

We are still no (sic) 100% what will happen to Crown, but we do know we want to direct you to Word Alive for the DVD products we were carrying.

Web searches — including The Edmonton Journal and The Edmonton Sun — did not track any news stories on Precision Sound.  As of 9:00 AM EST Wednesday, websites at Precision, Crown and Word Alive did not reflect the information contained in the letter.

DVD sales in the Christian bookstore environment have, for many stores, represented the one department in which there was growth and prospects for continued growth. However, in the general market, companies like Blockbuster have had to face new models for online delivery of movies — such as Netflix — that are changing the way customers access video entertainment. It is unclear if this trend was instrumental in the Precision Sound story, but the company was invested in the manufacturing of physical sound and video product, as well as sound and lighting installation for educational institutions, corporations and churches.

If your Canadian retail store did not receive a copy of the letter, please indicate in the comments. We’ll delete the comment after forwarding you what we received.

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  1. March 20, 2013 at 9:50 am

    In the case of the R. G. Mitchell closure, distribution contracts were effectively voided, and publishers renegotiated deals with David C. Cook Canada and Foundation Distribution. In the long-term, it would remain up to each video label to decide if they are comfortable with Word Alive as their distributor, or if they would want to take this opportunity to move distribution elsewhere.

  2. March 21, 2013 at 4:21 pm

    I talked with Word Alive this morning and they are rushing in stock to fill the Crown poduct in Foundation’s Spring Catalogue and 72 Hour Flyer. It sounds like they are in full gear to take over immediate distribution of the rest of the lines, as well, assuming, as you point out, that the publishers are willing.

  3. March 30, 2013 at 12:14 am

    We did not receive any notice from Crown. Thanks for the info. Hero’s, Smithers, BC

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