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Redbox parent Outerwall is pulling the plug on three new ventures in a cost-cutting move. Not so long ago, the Bellevue, Wash.-based company wanted to be the king of automated retail, building on the success of its Coinstar coin-counting kiosks and Redbox DVD rental machines. But now Outerwall is under pressure from investors to improve its profitability. On Tuesday, Outerwall (OUTR) announced that it plans to exit three new venture concepts: Rubi coffee kiosks, Crisp Market food kiosks and Star Studio photo booths. Outerwall also said it will cut 8.5% of its workforce, or 251 jobs. In addition, the company revealed that the president of its Redbox business had left after just over a year. Outerwall gave no reason for the departure of Redbox President Anne Saunders, but said it expects to fill the position in the coming months. “These actions are consistent with the plans we outlined earlier this year and ensure that Outerwall’s operations drive enhanced value creation for both our shareholders and retail partners,” Outerwall CEO J. Scott Di Valerio said in a statement. Outerwall expects to record a one-time, pretax charge of $26 million to $29 million in the fourth quarter related to its exit from the three ventures. It plans to shut down Scalper1 News
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