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Wal-Mart Dumps Production Company; Big Oops!

Today's front page of the Wall Street Journal featured this story about Flagler, a production company that has been video taping Wal-Mart's events and executives since the 70s. Wal-Mart, without any warning or reason, dumped the company leaving them reeling since Wal-Mart the vast majority of their business. Now, the company is selling the footage, all 15,000 tapes of it. This prompted some good commentary on the Wall Street Journal Blog.

Never forget the little guys who help along you the way. That old adage is likely ringing in the ears of Wal-Mart execs this morning following Gary McWilliams’ story about how a tiny video-production company is giving the world’s biggest retailer a massive headache.

It’s the story of Flagler Productions Inc., a small firm who for 30 years was employed as to capture footage of its top execs, sometimes in unguarded moments. Its relationship was sealed with a handshake, not a long-winded contract. Two years ago, Wal-Mart dumped Flagler and nearly caused the shop to fold because it accounted for such a large portion of its business.

...The biggest players in the world can’t function without smaller ones to keep them supplied, technologically-sound, and otherwise ticking. To stay afloat, Flagler offered to sell Wal-Mart the whole video archive for several million dollars. Wal-Mart, whose revenue is now over $375 billion, countered with an offer of $500,000.

And the little guy hasn’t forgotten.

Posted by Taylor - April 9, 2008 12:57 PM - In The News

Comments

I have some Walmart stock and have held it for some time now so I believe it is appropriate for me to post this information about a decision made by the chairperson of the board of Walmart to eliminate $30,000,000.00 of essentially free revenue generated by Walmart stores. This revenue is generated from renting floor space for game and vending machines in Walmart stores around the nation. It costs Walmart $00.00 to generate this revenue and what I have seen in several Walmart stores I have visited, this space is very productive. Does it make sense to eliminate free revenue?

Posted by Jon Griffin - April 9, 2008 03:19 PM

Looks like blackmail is alive and well.
Maybe the cost this plus the insurance case they dropped will cause walmart to rethink its policies.
They probably should cause employees to pay a greater portion of health insurance costs to cover fraud.
And even better close some stores, that would be a great victory....well except for those out of work, but who cares about them, they are just political collateral damage.

Posted by Linda Minshall - April 9, 2008 10:25 PM

As a former corporate office associate in the marketing dept, it seems I remember Sam Walton even inviting the Flagler people into his home to video tape picnics he had with his lowly hourly associates to make them feel special. He also invited the video crew on the annual "Canoe Trip" with all the financial analysts he invited to the shareholders meeting.
Wal-Mart didn't pay this company anything for storing and archiving this video - they were too cheap. Instead, they let them store it for free for years and whenever an executive at Wal-Mart needed a "video clip for a speech", the Flagler group would have to jump through hoops to get it "free of charge". There was also a woman named Karen Sinning who ran all the corporate shows for Wal-Mart that walked around the big meetings talking down to the Flagler crew, making them work on two hours sleep after putting on a show, etc. She also knew there were no contracts.
Oh, and I also remember video of David Glass (former WM CEO) having a nice "cold drink" outside in Sam Walton's yard with none other than, "HILLARY CLINTON". Wonder if they have that video???

Posted by Arkansas Native - April 10, 2008 04:12 PM

When my brother who worked at walmart was killed on his way to work he had no coverage or life insurance,my manager told me that he put money out of his check each payday to help workers in need,I said thats great and he put in for $1000 the limit of the program. He came back a few days later he came back and said he was turned downed because they don't cover"burial costs" So the people in the store had potluck dinners to help pay for it.It took over a year to raise the money for his marker,when I saw this video it made me sick..but the workers there always took care of each other not the managers or the store

Posted by Banished - August 15, 2008 06:04 PM

this kind of scenario demands big attention from the authorities.

Posted by video production company - October 1, 2008 11:39 AM

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