TORONTO – Alliance Atlantis’ Movie Distribution Income Fund announced this morning that it has let chairman Victor Loewy and CEO Patrice Theroux go.
No reasons were given but a company statement said: "The Motion Picture Distribution Board concluded a management change was necessary and in the best interest of MPDI." John Bailey, a member of the board of directors, has been installed as interim CEO of the Motion Picture Distribution partnership. AA CFO David Lazzarato will be acting board chairman.
Perhaps most distressing for the distribution company is that a contract with a "principal supplier" says it can walk away from its distribution agreement if Loewy leaves.
"The partnership’s output agreement with one of its principal suppliers may be terminated at the supplier’s option following Mr. Loewy’s departure from the business. Management intends to actively work with that supplier to ensure continuity of the relationship," says the press release.
Of course, it did not name the supplier. The movie distribution partnership distributes movies in Canada from New Line Cinema, The Weinstein Company, Focus Features, Dimension Films, Miramax Films, IFC Films and Remstar.
"The board would like to thank Victor and Patrice for their contributions to the partnership and wish them well in their future endeavours," said the company statement.
“The board is pleased to have an executive of John’s calibre in place during this transition period,” said David Richards, an independent director of MPDI and chairman of the compensation and
governance committee, in the press release. “Through John’s previous experience as CEO of Famous Players and as a senior executive at Paramount Pictures, he has forged close relationships with key customers and suppliers and is highly regarded throughout the organization.”
Bailey’s career spans 29 years in the film industry. He was chairman and CEO of Famous Players from 2000 to February 2003 after serving as president from 1997. Prior to that, he was COO from December 1995 and EVP from March 1992. For four years prior to joining Famous Players, Bailey was SVP, financial planning for Paramount Pictures Corporation, based in Los Angeles.
“We have a talented and capable group of more than 200 professionals across three territories who have forged long-standing relationships throughout the industry,” said Bailey. “I look forward to working together with the management team and our customers and suppliers to ensure a smooth transition.”
“On behalf of the senior management team and board of directors at Alliance Atlantis, we support the decisions reached by the board of Motion Picture Distribution Inc.," said Alliance Atlantis CEO Phyllis Yaffe. "We are confident that John Bailey, the interim chief executive officer of the partnership and the rest of the senior management team will ensure the business is well managed during the transition period and well into the future.
"As we have previously stated, we are currently reviewing the strategic importance of the Motion Picture Distribution business and as promised, we will report back when this review has been concluded," added Yaffe.
