The Handleman Co. has announced that its decades-long relationship as the sole music supplier to Kmart will come to an end soon. Troy, Mich.-based Kmart informed the rackjobber that another supplier will take over 400 stores.
Handleman, which is also based in Troy, says it will continue to supply 1,070 Kmart stores, but its annual volume will be reduced by about $50 million. Billboard.biz estimates that Handleman currently generates $200 million, which means that the hand-off to another supplier will leave it with $150 million from Kmart.
Kmart has not announced who the other supplier is, but the merchant initiated a 40-store test with Alliance Entertainment Corp. back in September. Coral Springs, Fla.-based Alliance was unavailable for comment.
