Principal Distributing Corporation was formed in 1932 with it's primary purpose to produce films for Sol Lesser's Principal Theatres Corporation.

Mr. Lesser was both a film exhibitor and one of his own film suppliers.

Principal Distributing handled high quality "B" films, documentaries and imports.

In 1933, Principal started producing serials such as "Tarzan the Fearless" and "Return of Chandu".

Principal closed their doors in 1938 with Mr. Lesser going on to become head of production for RKO in 1941.