Handleman wins in court; shares to become non-transferable on June 20

By Lisa Kerner

Charlotte, N.C., May 21 -The Circuit Court for Oakland County, State of Michigan, granted a request by Handleman Co. and declared that the company's shares will become non-transferable.

Handleman made the request to reduce costs during liquidation and to maximize the liquidated value of the company for the benefit of its creditors and possibly for the benefit of its shareholders, according to form 8-K filed with the Securities and Exchange Commission.

The Handleman shares will become non-transferable on June 20, the filing said.

In October 2008, Handleman shareholders approved the company's plan of liquidation and dissolution.

According to Handleman, dramatic changes in the music industry - the company's primary source of revenues - are mainly to blame for the decision to liquidate.

As previously reported, Handleman sold its music inventory and some other assets related to its Wal-Mart business in the United States to Anderson Merchandisers, LP in June 2008.

In July 2008, Handleman said it sold its Canadian operations to Anderson and sold its artist-to-market distribution unit to Eurpac Service, Inc.

A majority of Handleman's U.K. operations and assets were sold to a subsidiary of Tesco plc in September 2008.

Troy, Mich.-based Handleman was a category manager and distributor of prerecorded music to retailers.

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