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Zenith Moves Some Operations To N.J.

6/08/2001 03:54:00 PM Eastern

Lincolnshire, Ill. - Zenith Electronics has confirmed that 30 to 40 consumer sales and marketing positions will be transferred to Englewood, N.J., U.S. headquarters of parent company LG Electronics, by the end of June.

Along with the transfer of those positions the move will also include the integration of back office functions, such as IT and finance, between Zenith and LG. Over 200 corporate employees will remain at Zenith headquarters, here.

In other company news, VP sales Rick Powers reported that the response of dealers at its recent line show in Chicago (TWICE, May 28, p. 1) "was an endorsement of our `Digital DNA' program. We received good orders and most of them were for our digital products."

The type of dealers Zenith is looking to join its program should be "value added retailers, who can support consumers after the sale and will support Zenith programs," Powers said. "They should be able to fully support our digital strategy in the marketplace."

As previously reported, Crosley Distribution Centers will handle two-step distribution for Zenith, with the manufacturer selling around 100 to 125 retailers direct. The company will not be involved in selling buying group programs and will only sell one national chain, Circuit City, with its new distribution program. Sears, an Illinois neighbor and a traditional Zenith customer, is not part of the new program. The move is not a surprise since Sears has not done much business with Zenith during the past year.

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