Singing Machine partners with Logistics Plus to manage distribution

The Singing Machine announced it has entered into a logistics agreement with Logistics Plus to distribute Singing Machine’s karaoke products throughout the U.S. and Canada. In response to significant rising costs of commercial real estate, labor, and supply-chain costs in southern California, the Company has decided to not renew its lease on its approximate 90,000 sq. ft of warehouse space in Ontario, California. As a result, Singing Machine has opted to shift to a 100% variable-cost model, eliminating unneeded staffing, leasing, warehousing systems and equipment, and other fixed costs. The impact of this shift in operations will allow the Company to eliminate annually in excess of $1.6 million in fixed rent expense and approximately $1.2 million in direct and indirect labor expense. Gary Atkinson, CEO of the Singing Machine said, “With most of our major customers now accepting direct import delivery directly from China, we can pivot away from our need for a fixed in-house logistics solution. This should enable us to be more nimble in response to any changing environment, together with the benefit of working with one solution provider to coordinate all of our distribution throughout North America.”