Bad news slams Madacy stock
U.S. retailer slashes CD ordersTORONTO -- Shares in Canadian music and DVD producer Madacy Entertainment Income Fund on Wednesday fell sharply after an unidentified U.S. retailer drastically cut back on recorded music orders.
Stock in Montreal-based Madacy fell CAN$0.79 ($0.78), or 70%, to CAN$0.35 ($0.34) on the Toronto Stock Exchange after the producer said its biggest customer, Anderson Merchandisers, advised it that the U.S. retailer will carry far less "value-oriented" music CD product.
Madacy estimated that half of its 2007 sales went to the retailer in question.
North American music retailers have seen music sales fall off because of illegal online downloading and consumer calls for lower CD prices.