Camelot Music

Last updated
Camelot Music
Founded1956 in Massillon, Ohio
Defunct1998
FateMerger to Trans World Entertainment

Camelot Music was a mall-based American retailer of prerecorded music and accessories and was one of the largest music retailers in the United States based on store count. [1] Camelot specialized in the sales of prerecorded music, especially vinyl LP, 45-rpm records, cassette tapes, CDs, and video/music accessories.

Contents

As of May 31, 1998, the company operated 455 stores in 37 states nationwide under two brand names: Camelot Music and The Wall. Camelot Music consisted of 305 stores with the majority being based in the Midwestern and Southeastern United States, while The Wall had 150 stores located primarily in the Mid Atlantic and Northeast regions of the country. Industrial experts' assessment ranked the company as the third largest amongst specialty retailer store of recorded music. [1]

In late 1998, the Camelot Music group was acquired by Trans World Entertainment, [2] [3] [4] which later consolidated all of its mall-based music stores under the brand name FYE, including the remaining Camelot and The Wall locations.

In January 2020, Ancaster, ON-based Sunrise Records announced and subsequently finalized their purchase of the 206 store FYE music retailer from Trans World Entertainment for $10 million. Doug Putman, [5] the owner and CEO of the Canadian company stated he plans to continue the FYE name for the present US stores. Putman recently purchased the 100 store HMV entertainment group and plans to open the Sunrise Records branded chain in all 70 Canadian leases now under the HMV banner. Camelot Music stores will continue to be named FYE.

Background/overview

Camelot Music Inc. was founded in 1956 by Paul David in Massillon, Ohio. Initially operating as Stark Record and Tape Service, the company placed racks of LPs, 45 rpm records and cassettes in rented store space and maintained their stock and displays. In 1965, the company opened its first retail store as Camelot Music in North Canton, Ohio with another store opening in the Mellett Mall (now Canton Centre) a few months later. While Camelot focused on being situated primarily in shopping centres or malls, it later diversified into free standing locations and music departments in leased spaces located in large discount stores.

Camelot intensified its efforts and geographic market by the acquisition of other record retailer chains, including the California-based Rainbow Records in 1990, and Philadelphia-based music retailer Record World in 1992. [6] Furthermore, Camelot entered a corporate agreement to buy some of the holdings of Wee Three Records, a UK-owned chain that had gone bankrupt - specifically, six additional stores and the inventory from several more outlets.

By 1993, the company owned a total of 360 stores across the United States and later in the year, founder Paul David stepped down as CEO, turning the position to COO of Camelot James Bonk and sold his majority holdings of Camelot Inc to Investcorp through a stock swap. [7] Stock or equity based swaps have been a common strategy for companies to obtain majority control over companies. [8] [9] Following the acquisition of Camelot, Investcorp purchased Hastings Music & Books and the Cavages music retailers.

Bankruptcy and post-administrative operations

By mid 1996, as a consequence of the changing nature of work alongside Investcorp's leveraged buyout of Camelot Inc from David the company found itself closing a number of its stores, laying off staff and eventually leading to filing a Chapter 11 Bankruptcy Protection Agreement. [10] The Chapter 11 Plan allowed the company to operate continually at a loss, so as to pay off creditors. [11] In 1997, following corporate and debt reorganization, the company emerged from its bankruptcy with its creditors as the new owners.

In 1998, free from its bankruptcy court supervision, the company acquired certain assets of The Wall, formerly owned by British company WHSmith taking over 153 of their mid-Atlantic chain-based stores. [12] The Wall was best known for its trademark "Lifetime Music Guarantee", which offered free replacements for cassettes and CDs that had been damaged in any way. [13] [14] They were also notable for allowing customers to listen to CDs before buying them, and for their "Repeat Performer" customer card program, where 20 card punches earned a free CD or cassette tape. [15]

Later in 1998, Camelot merged with South Florida retailer Spec's Music. [16] [17]

In October 1998, Trans World Entertainment, a video and music retailer, acquired Camelot Inc alongside its acquired companies The Wall and The Spec's for a stock swap valued approximately $427 million. [7] Trans World Entertainment later rebranded the entirety of their music retailer-based stores to FYE with the initials standing for “For Your Entertainment”. [18] [19] FYE continues its operations as a music retailer both online and in stores around the United States. [20]

In March 2017, FYE founder and CEO Bob Higgins died. Higgins was responsible for the creating the FYE brand as well as maintaining its profitability and therefore its status as the last remaining music chain store. [21]

In November 2018, FYE's parent company was accused in federal court of deceiving customers by asking them to sign up for "free" and/or "loyalty" membership programs and magazine subscriptions while charging their credit and debit cards $11.99 per month until customers cancelled the services. Another allegation was that customer information was shared with marketing company Synapse without customer consent. [22] [23]

In 2018, 33 FYE stores were closed, and 35 more were scheduled to be closed before the end of Trans World's fiscal year on February 2, 2019. [24]

In the fiscal year ended Feb 1, 2020, FYE posted a loss of $50.7 million for the retail chain, more than double of the previous year. [25] Later the same year Sunrise Records announced and subsequently finalized their purchase of FYE from TWEC. [26] [27] [28]

Founder and early inspirations

Paul David was one of thirteen siblings born to an immigrant Lebanese family and worked initially as a sales representative. [29] He ventured to work as an independent retail store shelf stacker, stocking vinyl LP and 45 rpm records in low density local stores such as pharmacies, variety, grocers and specialty stores. [30] He then later expanded on towards stocking larger retailers and grocers before opening his first retail store in North Canton, Ohio in 1965 followed by the successful expansion of Camelot Inc across the United States and the acquisitions of several other retailer music stores.

At 70 years of age in 1993, David sold his company to Investcorp and established the Paul & Carol Foundation with his wife, which has since provided scholarship opportunities to over 300 high school students. [31] Further to this, David founded and financially invested in the Massillon Tiger Football Program in 1983. [31] On the 2nd November 2002, David passed away at 79 years of age following a brief illness and was buried at St Joseph's Cemetery. [31]

See also

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References

  1. 1 2 "Trans World finds Camelot in purchase of competitor". Archived from the original on 2021-06-18. Retrieved 2021-05-18.
  2. ↑ "Trans World finds Camelot in purchase of competitor" Archived 2014-10-31 at the Wayback Machine . The Business Review , November 2, 1998.
  3. ↑ "Trans World To Buy Camelot Music For $451.9 Million" Archived 2016-03-06 at the Wayback Machine . The New York Times , October 27, 1998.
  4. ↑ "Also..." . Los Angeles Times , October 27, 1998.
  5. ↑ 1
  6. ↑ "Camelot Music, Inc. | Encyclopedia.com". www.encyclopedia.com. Archived from the original on 2021-05-18. Retrieved 2021-05-31.
  7. 1 2 Newswires, Dow Jones (1998-10-26). "Trans World to Purchase Camelot Music in Stock Swap". Wall Street Journal. ISSN   0099-9660. Archived from the original on 2021-05-18. Retrieved 2021-05-18.
  8. ↑ Mergers and acquisitions : current issues. Greg N. Gregoriou, Karyn Neuhauser. Basingstoke, Hampshire: Palgrave Macmillan. 2007. ISBN   978-0-230-58968-1. OCLC   314766398.{{cite book}}: CS1 maint: others (link)
  9. ↑ "Swap Definition & How to Calculate Gains". Investopedia. Archived from the original on 2021-06-26. Retrieved 2021-05-31.
  10. ↑ Schabracq, Marc J.; Cooper, Cary L. (2000-01-01). "The changing nature of work and stress". Journal of Managerial Psychology. 15 (3): 227–241. doi:10.1108/02683940010320589. ISSN   0268-3946. Archived from the original on 2023-11-10. Retrieved 2021-05-18.
  11. ↑ Bordewieck, Countryman, Douglas, Vern (1983). "The Rejection of Collective Bargaining Agreements by Chapter 11 Debtors". Law Journal Library. 57: 293–338.{{cite journal}}: CS1 maint: multiple names: authors list (link)
  12. ↑ "Company Closes, But Aids Workers Through Changes The Wall Built A Successful Culture. It Decided To Build A Successful Way Of Taking The Company Apart" Archived 2016-03-04 at the Wayback Machine . The Philadelphia Inquirer , March 30, 1998.
  13. ↑ P.C, LegalForce RAPC Worldwide. "See Dead/Cancelled Trademark THE WALL LIFETIME MUSIC GUARANTEE with classes [035]". See Dead/Cancelled Trademark THE WALL LIFETIME MUSIC GUARANTEE with classes [035]. Archived from the original on 2023-06-25. Retrieved 2023-06-25.
  14. ↑ "The Wall Lifetime Music Guarantee" Archived 2022-03-25 at the Wayback Machine . Reading Eagle, July 6, 1994, Page A5.
  15. ↑ "The Wall building solid relationship with music lovers". The Reading Eagle. July 1, 1998. Archived from the original on March 25, 2022. Retrieved September 19, 2016.
  16. ↑ "Camelot Music, Spec's Music announce merger agreement" Archived 2014-10-31 at the Wayback Machine . South Florida Business Journal, June 5, 1998.
  17. ↑ "Music Stores Spec's And Camelot Merge" Archived 2022-03-25 at the Wayback Machine . Ocala Star-Banner , August 11, 1998.
  18. ↑ News, Bloomberg (2001-03-20). "COMPANY NEWS; TRANS WORLD ENTERTAINMENT TO RENAME 730 MALL STORES". The New York Times. ISSN   0362-4331. Archived from the original on 2021-06-02. Retrieved 2021-05-31.{{cite news}}: |last= has generic name (help)
  19. ↑ Inc, Kaspien Holdings (2020-01-23). "Trans World Entertainment Corporation Announces Agreement to Sell FYE Segment". GlobeNewswire News Room (Press release). Archived from the original on 2021-06-02. Retrieved 2021-05-31.{{cite press release}}: |last= has generic name (help)
  20. ↑ Press, SARAH SUE INGRAM Daily (24 March 2001). "FYI: MUSIC STORES WILL BE CHANGING NAME TO 'FYE'". dailypress.com. Archived from the original on 2021-01-24. Retrieved 2021-05-18.
  21. ↑ Christman, Ed (2 March 2017). "Bob Higgins, Pioneering Founder of Trans World and FYE, Dead at 75". Billboard. Retrieved 15 January 2019.
  22. ↑ Posses, Shayna. "FYE Must Face The Music For Bogus 'Free' Offers, Suit Says" . Law360.com. Retrieved 15 January 2019.
  23. ↑ Honaker, Brigette (19 November 2018). "FYE Class Action Challenges Loyalty Program and Magazine Subscription Charges". TopClassActions.com. Retrieved 15 January 2019.
  24. ↑ DeMasi, Michael (November 2, 2018). "Trans World gets OK from creditor to close more FYE stores". Albany Business Review. Retrieved April 11, 2019.
  25. ↑ Gruenwedel, Erik (2020-06-16). "FYE Retail Stores Lost $50.7 Million in Fiscal Year". Media Play News. Retrieved 2023-08-14.
  26. ↑ Slingerland, Calum (23 January 2020). "Sunrise Records to Acquire U.S. Entertainment Chain FYE". Exclaim! . Retrieved 3 February 2020.
  27. ↑ "$10 million sale of the FYE retail chain approved". Albany Business Journal. 18 February 2020. Retrieved 2020-03-04.
  28. ↑ Kennedy, Marlene (2020-02-21). "Down to Business: Sunrise will keep FYE chain spinning". The Daily Gazette. Retrieved 2023-08-14.
  29. ↑ writer, Christina McCune Independent staff. "99-year-old: "I feel so blessed."". The Independent. Archived from the original on 2021-06-02. Retrieved 2021-05-31.
  30. ↑ "History of Camelot Music, Inc. – FundingUniverse". www.fundinguniverse.com. Archived from the original on 2021-06-02. Retrieved 2021-05-31.
  31. 1 2 3 "Paul David Obituary (2002) - Akron, OH - Akron Beacon Journal". www.legacy.com. Archived from the original on 2021-05-18. Retrieved 2021-05-18.
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