Business
Educational Development Corporation Announces New Distribution Agreement with Usborne Publishing Limited
Tulsa, Oklahoma--(Newsfile Corp. - May 19, 2022) - Educational Development Corporation (NASDAQ: EDUC) ("EDC," or the "Company") (http://www.edcpub.com) today
About this update from Educational Development Corporation
[{"type":"text","content":"Tulsa, Oklahoma--(Newsfile Corp. - May 19, 2022) - Educational Development Corporation (NASDAQ: EDUC) (\"EDC,\" or the \"Company\") (http://www.edcpub.com) today reports a new Distribution Agreement with Usborne Publishing Limited effective May 16, 2022.\nUnder the terms of the new agreement, EDC's UBAM direct sales division will have continuous access to sell Usborne titles through its sales channels. UBAM will also continue to have non-exclusive rights to sell Usborne titles to individuals in the School and Library Market through book fair and \"Reach for the Stars!!\" programs, etc., however, EDC will no longer sell directly to Schools and Libraries.\nAdditionally, following a six-month continuation of service period, the Company will discontinue selling Usborne products through its Publishing division. The discontinuance of rights to sell Usborne products through the Publishing Division and direct to Schools and Libraries is not expected to have a material impact going forward and for the last five years represented less than 10% of net sales.\nCraig White, EDC's President and Chief Executive Officer said \"Usborne Publishing's products have been the cornerstone of EDC since we first became their distributor in the 1970s, and we have partnered with Usborne and distributed Usborne's products in the United States for over 40 years. This new agreement with Usborne Publishing replaces previous agreements that had terms that were no longer relevant or applicable. The agreement gives us an adequate transition period to discontinue the sale of Usborne products through our Publishing Division and a short-term exclusivity period for top selling Usborne products for our UBAM division. These transition and exclusivity periods will allow us to maintain our profit margins while we normalize our inventory levels of Usborne products. This new agreement opens opportunities for both EDC and Usborne to experience continued success. We appreciate Usborne's ongoing commitment and support, not only during this year's transition, but also for years to come.\"\nPer Nicola Usborne, Deputy Managing Director of Usborne Publishing Limited, \"We look forward to building on our long relationship with EDC - and its many, very experienced and committed direct selling consultants - to get books that inspire and educate to children and their families.\"\nAb...