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.