Tweeter and Monster End Relationship

The two companies are butting heads resulting in the retail chain Tweeter dropping Monster products from their stores.

In an announcement released today, Monster cites concern for Tweeter’s financial condition and the exposure of its four million dollar credit line. In what only appears to make sense, Monsterhad decided to roll back Tweeters credit line “to commensurate levels and recommended a shortening of terms that would still allow Tweeter’s Monster business to continue.” But apparentlyTweeter was not happy with this decision and as a result plans to drop all Monster products and replace them with other vendors.   "We believe that this separation is a huge loss betweenthe two companies as Tweeter is one of most successful retailers under Monster’s M4 program, and Monster is one of the most profitable vendors for Tweeter," says Noel Lee, founder of MonsterCable.   Noel Lee, CEO of Monster Cable, who originally implemented the M4 program with Tweeter, says, "This is a sad end to a long relationship. Tweeter was the very first retailer tobenefit under our M4 program implementation over 10 years ago. It was a true partnership between our two companies. The M4 program is firing on all cylinders at Tweeter with profit increases of thepast two years that has earned Tweeter the prestigious category award of the Most Monstrous AV Specialty Chain Award of 2004 at the CES show in January. The abrupt end to the partnership and thereluctance to work things out before dropping Monster came to us as a complete shock." Monster cable fans will have to head over to either Best Buy or Circuit City if they want to buy theirproducts. Could these two companies ever possibly make up?