Borshell to head Image Entertainment
Greenwald to remain chairman of board
By Susanne Ault -- Video Business, 4/1/2008
Borshell
APRIL 1 | David Borshell has been named president at Image Entertainment, replacing company founder Marty Greenwald as the supplier’s top executive.
Greenwald
Greenwald, president and CEO of Image for 25 years, will remain chairman of Image’s board and the company’s second-largest individual shareholder.
Going forward, Borshell, most recently chief operating officer, will report to Image’s board. He is a veteran of the company as well, joining in 1984 before rising to COO in 2000. Image has opted to eliminate the CEO role.
Effective immediately, this changing of the guard underscores a new direction for Image, which is looking for a fresh start after the collapse of its merger with BTP Acquisition Co. earlier this year. Image also has reported several straight quarters of financial losses and endured steep drops in its share price.
Under Borshell’s direction, Image plans to aggressively ramp up feature film acquisitions for DVD release in order to bolster business. In its fiscal 2009, Image hopes to street 50 new star-driven feature films, at a rate of four to five DVDs a month.
Image traditionally has been best known as the distributor of Criterion Collection arthouse titles and stand-up comedy DVDs.
“The first priority is to focus on increasing revenue and making money—that is what my goal is,” said Borshell. “It has been a tough couple of years, and we can give different excuses and reasons. But we are starting from scratch with this brand new fiscal year, and we want to bring the company back to profitability. … The acquisition and distribution of feature films will be a key revenue growth driver this year.”
In some fall-out with its would-be BTP parent, Image sued BTP affiliate CT1 Holdings for trying to dismantle a ThinkFilm feature film distribution deal. An interim pact has been re-instated allowing Image to street select titles from ThinkFilm, a CT1 subsidiary. But the case continues to be tried in Los Angeles Superior Court.
At this point, no new releases from the interim CT1 agreement have been announced, said Borshell. However, he explained that Image is actively pursuing feature films outside of the BTP family. Such upcoming non-ThinkFilm releases include Numb featuring Matthew Perry, Love and Other Disasters with Brittany Murphy and The Secret starring David Duchovny.
On April 15, Image will bow ThinkFilm title Before the Devil Knows You’re Dead, which is part of a one-off distribution pact separate from the disputed CT1 arrangement.
Former First Look Studios Home Entertainment chief Bill Bromiley also will help chart Image’s new course. Bromiley had been involved in Image acquisitions while he was working with BTP subsidiary Capitol Films. Now, he is expected to soon formalize a top role at Image.
Greenwald is pleased to hand the day-to-day reins of Image over to Borshell, while continuing his involvement with the company on its board.
“This is a time that is a little sad, but joyful. I am not the puppy that I once was,” said Greenwald. “David has made this process easier. He has been here forever and knows every nook and cranny. He knows all of our vendors and knows everyone in the company.”
Greenwald reiterated that the first order of business is Image recovering financially. There are no immediate plans to hunt for a replacement for BTP, which represented the second failed Image acquisition suitor in less than two years. Lionsgate attempted to take over Image in 2006.
“We’re not actively pursuing the sale of the company,” said Greenwald. “If someone comes along with a bona fide offer, we will look at it, absolutely. Our main focus is to get back to profitability, and after that, you’ll be amazed by how many good things can happen.”
