Russound Sells Colorado vNet
April 25, 2012
Russound has completed the sale of Colorado vNet to a new company former Russound vice president of sales and marketing Mike Anderson has launched.
The sale is part of a new strategic business plan that Russound stated will return the company to its core business, providing electronics, speakers, and accessories to residential and commercial systems integration channels, according to a company press release.
Russound is in the process of searching for a high-profile replacement for Anderson. A business development firm has been retained to expedite Russound’s marketing, product development, and sales strategy.
“As we unveil our plans over the next few weeks and months, dealers will see first hand that we are making long-term improvements to benefit all our valued customers,” said Charlie Porritt, Russound CEO. “The entire Russound team has high enthusiasm and renewed energy for the strategic plan in place. I feel very good about Russound’s future growth and long-term success.”
Anderson told Residential Systems that he plans to consolidate some of the vNet staff from Colorado and others from Russound headquarters in New Hampshire in a new headquarters location, perhaps in Florida.
Russound first tried to save Colorado vNet by purchasing its assets back in 2009. Apparently the turnaround of the company—combined with the struggling economy—proved to be too much, and at the end of 2010, Colorado vNet began officially “winding down” operations to focus on R&D and reallocate intellectual property elsewhere.
However, due to what Porritt described in February 2011, as “overwhelming feedback from dealers and reps that no other product fills this need,” the brand was revived at that time.
Colorado vNet has an official re-launch scheduled for June. In a statement, Anderson commented: "As the VP of sales for Russound and Colorado vNet, I've seen how the Colorado vNet brand has its own unique place in the market. Colorado vNet integrators have needs unique to themselves and having the opportunity to set this company apart—under its own direction once again—is an opportunity to provide those integrators with the support they deserve. We look forward to reestablishing the vNet brand and dealers can be assured that our team is excited and working hard to strengthen our relationships with them and to deliver on all the promise the brand has always held."
For Jeremy Glowacki's analysis of this story, click here to read his blog post.