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Emerson Radio Corp. (NYSE MKT: MSN) is analyzing strategic alternatives, including a potential transition in the company’s business model and potential strategic acquisitions related to such transition, and will retain a financial advisor to assist in its evaluation, the company said in a filing. As of March 29, 2016, Emerson Radio had a market capitalization of $23.87 million, and an enterprise value of -$20.27 million, based on data provided by Capital IQ. Emerson Radio is highly dependent upon sales of its products to Target and Wal-Mart. For the fiscal years ended March 31, 2015 and 2014, Target accounted for approximately 51% and 58%, respectively, of the company’s net revenues, and Wal-Mart accounted for approximately 28% and 22% of the company’s net revenues, respectively. No other customer accounted for more than 10% of the company’s net revenues during these periods, according to the company’s 10-Q filing on February 16, 2016. Emerson disclosed that “one of its key customers decided to discontinue retailing in its stores the Emerson-branded microwave oven and compact refrigeration products.” The name of the key customer has not been disclosed. In addition, Funai Corporation, Inc. provided a notice to terminate its License Agreement with the company effective December 31, 2016. In 2001, Emerson exited the video electronics business (TVs, DVD players, VCRs) and handed 100% of the manufacturing operations to Funai, which continued to make and market Emerson consumer video products for Wal-Mart. Funai Corporation is the North American sales and marketing subsidiary of consumer electronic products manufacturer Funai Electric Co.Ltd., of Japan. The company said it is analyzing the impact of these events to its business and is identifying strategic courses of action for consideration, including seeking new licensing relationships. To this end, the company has entered into a short-term consulting agreement with a company that focuses on strategic brand extensions to assist the company in development of a business plan to enhance its licensing and brand strategy. In addition, after considering the impact of these events on the company’s revenue, and in an effort to align its cost structure to anticipated future revenue levels, the company’s board of directors approved a workforce reduction plan, which will result in a reduction of approximately 23% of the company’s worldwide workforce. Emerson Radio Corp., founded in 1948 and previously known as Emerson Phonograph Co. until 1977, is one of the nation’s largest volume consumer electronics distributors with a recognized trademark in continuous use since 1912. It continues to be one of the oldest and well-respected names in the consumer electronics industry. The company offers its products primarily under the Emerson brand name; and licenses its trademarks to others on a worldwide basis for various products. Emerson Radio Corp. markets its products primarily through mass merchandisers. The company is headquartered in Hackensack, New Jersey. Emerson Radio designs, sources, imports, markets, and sells various houseware and consumer electronic products in the United States and internationally. It provides houseware products, such as microwave ovens and compact refrigerators; audio products, including clock radios and portable audio products; and other products comprising televisions, mobile and landline telephones and accessories, tablet computers and accessories, cameras and video cameras and accessories, and miscellaneous electronic and novelty products. On May 31, 2011, the High Court of Hong Kong appointed Fok Hei Yu (also known as Vincent Fok), formerly a director and chairman of the company, and Roderick John Sutton, both of FTI Consulting (Hong Kong) Limited, as Joint and Several Provisional Liquidators over Grande Holdings Limited (In Liquidation), which indirectly has the power to vote and direct the disposition of 15,243,283 shares, or approximately 56.2%, of the outstanding common stock of Emerson. Grande is now said to be implementing a resumption plan pursuant to which Christopher Ho, who served as the Emerson’s chairman until November 2013, and his associates would continue to have a majority interest in Grande and would regain the power to direct the voting and disposition of the 15,243,283 shares beneficially owned by Grande. On March 9, 2016, Grande issued a notice of a special meeting of its stockholders to be held on April 1, 2016, to among other things, approve the resumption proposal and elect directors, including Duncan Hon, who is currently CEO of Emerson and is proposed to be appointed as an executive director of Grande. According to the circular dated March 9, 2016 published by Grande, if all the requisite approvals are obtained in a timely fashion, the resumption plan is expected to be completed on or before May 11, 2016.]]>