Magnum Sales Midwest, a car audio distributor owned by Mitek, closed the MN-based location on Monday.
However, its sister company, Magnum Sales Southwest in AZ remains open.
Mitek said there was little need to retain the Midwest distributor, as Mitek recently switched to a direct Internet distribution model that no longer requires brick and mortar distributors for the MTX car audio brand.
“MTX is not using distributors; it just didn’t make sense to keep it open,” said Mike Roberts, Mitek Senior VP & Director Sales & Marketing.
He said MTX is now working with over 1,000 dealer and web affiliates directly through its web distribution system.
The Magnum Midwest closure was effective Monday. In a letter to dealers, Magnum’s Jesse Stamm, said that the landscape for consumer electronics has shifted in the past few years and retailers must reinvent the way they do business. He wrote, “Show-rooming is at an all-time high. Internet resellers, websites promoting online deals, and smartphone applications searching for the lowest price have changed the way consumers shop for mobile electronics. The race to zero is moving faster than ever. After considering these factors, we have found it necessary to make changes as well. We thank you all for your support over the last few years and we wish you success in the future as you continue to change your business strategies and how mobile electronics are sold.”
Magnum Sales Southwest continues to distribute home and car audio brands including Sony, JVC Mobile, Auto Page, Massive, Cerwin Vega, PAC, Rydeen, Scosche, Kinetik, iSimple, Streetwires, iDataLink, Valor, PowerBass, Planet Audio, SoundStream, Exonic, CompuStar, Blackmore, and Scytek.
Dealers with open sales order should call Magnum Midwest at 888-566-0033.
Source: CEoutlook
