M. Rothman’s Future in Question
Rumors are swirling around at the CEA Line Shows in New York City and within the CE industry that M. Rothman, the New Jersey-based consumer electronics distributor that recently celebrated its 50th anniversary, is going out of business.
Russell Rothman, executive vice president at the company, did not return a call to his cell phone Wednesday afternoon. An operator at the company earlier in the day said Russell and his two brothers, Billy and Douglas, the other two company principals, had left the distributor’s Ramsey, N.J., headquarters earlier in the day and had not returned.
“I expect them back because their stuff is still here,” she said. “I really don’t know what’s going on.”
An executive of a distribution group with close ties to M. Rothman said he had asked Billy Rothman on Monday “flat out” if the company was closing down but was not given an answer. The executive said he did not think the company is going under, but believes at least one of the brothers wants to leave the company.
“He (Billy) said there’s nothing to say right now and said they would have an announcement early next week,” the executive said. “I don’t think they’re going out of business. I really don’t believe they are.”
According to the executive, some vendors are still offering the company credit, while others may not be.
Another distribution executive familiar with M. Rothman said he has started to receive many calls from vendors wondering if he knows anything about the company’s fate.
“It sounds like they’re going out,” he said. “The main problem is that they didn’t change with the times” such as updating back-end systems and product selection. “Many of the retailers they serviced have gone out of business so they don’t have the customer base they need.”
Stay tuned to Dealerscope.com for further updates.