Time Life Music and Books will no longer rely on former sister company Lillian Vernon Corp. to handle fulfillment operations and instead will consolidate its fulfillment with Reader’s Digest, Lillian Vernon said today.
Lillian Vernon, a house wares and gifts retailer that is No. 66 in the Internet Retailer Top 500 Guide, had provided order processing, warehousing, distribution and call center services for Time Life’s direct-to-consumer sales since 2004. Lillian Vernon and Time Life started that relationship when they were each owned by Direct Holdings LLC, a subsidiary of Ripplewood Holdings.
Sun Capital Partners Inc. acquired Lillian Vernon in May 2006. And after Ripplewood acquired Reader’s Digest Association on March 5, 2007, it decided to fold Time Life’s fulfillment operations into those of Reader’s Digest.
Lillian Vernon says Time Life’s departure affects about 230 employees in its Virginia Beach location, without offering more specifics. Both Lillian Vernon and Sun Capital executives say they remain committed to supporting the retailer’s Virginia Beach headquarters, opened just last fall.
“Time Life’s decision does not change our absolute commitment to Virginia Beach as Lillian Vernon’s worldwide headquarters,” says Lillian Vernon CEO Mike Muoio. “We will continue to reap the rewards from the improvements we have made in the efficiency and organization of our fulfillment operations.”
Lillian Vernon’s Kristen Montella, vice president, onnline, is speaking at the Internet Retailer Conference & Exhibition, June 4-7 in San Jose, in a session entitled Avoiding Disaster: Managing a Technology Implementation .