Source Interlink Founder Resigns

Michael Duckworth is named chair and James Gillis and Alan Tuchman interim co-CEOs.
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Source Interlink's

(SORC)

founder, S. Leslie Flegel, has resigned from the company and the board of directors.

Flegel, 69, held the titles of chairman and CEO at the marketing and CD/DVD merchandising company. He will continue to serve as a consultant to the company under a three-year agreement.

The board named Michael Duckworth, a director of the company, as chairman. The company will launch a search for a new CEO, but for now James Gillis and Alan Tuchman will serve as interim co-CEOs.

Gillis and Tuchman are chief operating officers of, respectively, Source Interlink and the company's Alliance Entertainment subsidiary.

"Building this company has been a tremendous source of pride and accomplishment for me," Flegel said in a company statement. "Now is the right time to transition leadership to a new generation that will continue to revolutionize the way home entertainment content products are sold at retail. I am eager to help management realize the objectives we have established for Source."

Shares of Source Interlink were lower by 11 cents, or 1.2%, at $9.08 in recent trading Monday.