CD Warehouse Closes e-Door

IRCE 2008 Conference Multi-Media CD-ROM

CD Warehouse Inc. has suspended operations of its web site, cdwarehouse.com. As a result, the company expects to realize a pre-tax, nonrecurring charge against earnings of approximately $1.7 million during the third quarter. "We feel this action is a very positive step toward returning the company to profitability," says Christopher M. Salyer, chairman and CEO. While the company characterizes the discontinuation of e-retailing sales as an indefinite suspension, it says it is not abandoning e-commerce as a growth strategy. Many elements of the current system will be retained for future redeployment. "We will continue to develop an infrastructure on which we can reintroduce this service to our customers in the future. In the interim, we will continue to maintain our corporate website, http://www.cdwi.com," Salyer says.