The Week Online Archive
Directed Gets Out Of The Sirius Business
November 10, 2008:Vista, CA-based Directed Electronics will no longer be distributing or selling satellite radio receivers as it winds down its relationship with Sirius, and, now, Sirius XM Radio. The companies will part ways officially as of January 31, 2009.
Jim Minarik, President/CEO of Directed parent DEI Holdings, said the retailer is proud of what it's been able to accomplish since signing a distribution deal with Sirius Satellite Radio in 2004, but continued, "However, based on the large working capital commitment required for this business, as well as a strategic decision on our part to focus on our core security and entertainment businesses, we will not be extending our current agreement with Sirius XM when it expires on January 31, 2009. We have enjoyed an excellent partnership with Sirius over the past four years and expect to continue working closely with them to ensure the smoothest possible transition to their new distribution partner between now and early 2009."
The transition agreement specifies that either Sirius XM or its new distribution partner will buy "substantially all" remaining satellite receiver inventory from Directed in Q1 of next year and take responsibility for all product returns and warranty costs after January 31, regardless of when the product was sold.