Wherehouse files chapter 11

Discussion in 'Music' started by Dennis Nicholls, Jan 21, 2003.

  1. Dennis Nicholls

    Dennis Nicholls Lead Actor

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    Here's the story:
    http://news.yahoo.com/news?tmpl=stor...eentertainment

    They blame downloading of music in addition to competition. I don't think I've been in one for 10 years, as they stock fewer classical titles than I own..... I started shopping on-line for choice, not price.
     
  2. Ted Lee

    Ted Lee Lead Actor

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  3. StevenW

    StevenW Second Unit

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    Jesus!! thats right blame EVERYTHING on downloads, never take a look at yourself, put the blame on EVERYONE else.
     
  4. Christopher P

    Christopher P Supporting Actor

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    Yeah, that will bring business back.

    Chris
     
  5. LanceJ

    LanceJ Producer

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    I just saw a piece on CNN about this announcement. What got my attention was the fact that many discount stores sell lots of CDs for less than cost simply as an incentive to pull customers into the store. Scary.

    And, in my hometown, the small mom-n-pop music chain closed another store (the one I went to). They sold CDs for only a dollar more than Best Buy and had a better selection of hard to find titles. In fact tonight I was trying to buy an album by a group called Nightmares on Wax (http://www.cduniverse.com/productinf...41&style=music) and BB said they stopped selling it. Wherehouse said they could order it, but I bought that Getz/Gilberto Verve CD instead (cool slinky music!). Now I won't have that option at Wherehouse and the other store's other branch is 40 minutes away. [​IMG]

    I really, really don't want to think about a future where all my music purchases are at Wal-Mart or Best Buy; I can't imagine them stocking anything that doesn't have big sales potential. And knowledgable sales people that like music like at my mom/pop store? Hahahaha! Another scary thought.

    The recording industry had better get off their asses and start rethinking their pricing philosophy very quickly (i.e. no more summer homes on the French Riviera, $100K yearly bonuses, constantly worrying about their precious stockholders, etc.) because things are looking pretty dark now. Haven't they ever heard of long-term financial planning?????

    LJ
     
  6. Seth_L

    Seth_L Screenwriter

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  7. Kevin C Brown

    Kevin C Brown Producer

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    B*st*rds...

    Wherehouse bought my favorite independent CD store, the "CD Warehouse" a few years ago. The Warehouse carries both new and quite a good selection of used, and they also had really good "buyers." I'm looking for something bizarre that Tower and other "big" stores don't carry? The Warehouse would have it. But they went downhill after being bought by Wherehouse. Serves 'em right.
     
  8. Justin Doring

    Justin Doring Screenwriter

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    One of the two Wherehouses near me closed a few months ago, but I haven't been in either store for ages. With a pathetic selection and $20 CDs, it's no mystery why they, Sam Goody, and others are going out of business; music downloading my foot.
     
  9. Karl_Luph

    Karl_Luph Supporting Actor

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    Justin, you're right, this is another example of why a company cannot stay in business by overpricing their cds, hiring incompetent kids to work there and expecting the masses to flock to the store. Americans are rethinking about how to go back to the idea of finding a better deal. Borders,language,culture.
     
  10. Jesse Skeen

    Jesse Skeen Producer

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    I used to buy all my CDs at The Wherehouse back in 1985 when they had them all priced at $11.99. Soon afterwards that stopped and they went to list price, which was usually $15.99. I though THAT was too much, and can't believe prices have gone UP since then!
    It was a good place to rent movies on VHS too, but I stopped that after getting a laserdisc player.
    They've already closed most of their stores in the area. The record companies are mostly to blame for the prices though, since the stores lose money if they sell below cost.
     
  11. Paul.S

    Paul.S Producer

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    Last night, I went to (what I thought was still) the Santa Monica, CA store that had remained open after the rash of store closings last year to sell some CDs and the original Cast Away (now that I've bought the cooler Digipak re-release). Empty store, gutted ceiling, dirty floor. Sign on the door said that they were closing December 27, 2003 (two days after Christmas!) after 20 years of business. Sad.

    Interestingly, other signs on the front door referred people to fye.com (another chain, primarily a New England mall rackjobber, owned by Trans World Entertainment) not Wherehouse.com.

    So now, basically all six stores Wherehouse used to have in West Los Angeles (three in Marina del Rey, two in Westwood and one in Santa Monica) have closed.

    Has anyone sold CDs/DVDs via the Wherehouse.com Website? Good experience?

    Has anyone seen word in any of the news stories on this about whether the Website is going to continue business as usual, at least for now?

    What with local indie retailer Penny Lane having closed its store on the Santa Monica Promenade, I've now lost almost every local (and indeed, every convenient) avenue for selling CDs/DVDs once I trade up to a remaster.

    What with Tower parent MTS Holdings for sale, I keep bracing myself for word of the closure of the Marina del Rey Tower in my neighborhood (the Westwood Tower--yes, in UCLA's front yard--closed last year). If that were to happen, there would be no mainstream music store proper near my house. How is that possible in West Los Angeles?

    Meanwhile, the CD and DVD prices continue to be eye-poppingly low at my local Costco . . .

    -p
     
  12. Ted Lee

    Ted Lee Lead Actor

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  13. Page

    Page Stunt Coordinator

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  14. Paul.S

    Paul.S Producer

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    Ted et al.:

     
  15. EricSchulz

    EricSchulz Producer

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    RE: Tower Records

    When I lived in Denver there was an AWESOME Tower Records next to Cherry Creek Mall. Their selection of movies/music/books was unbelievable! But, when I traveled the country and stopped in other Towers, I found that the chain was incredibly inconsistent. Many of the stores were no better than FYE or Sam Goody. I worked at Virgin Megastore one summer (in Denver), and heard lots of groaning about the prices, but they had pretty much everything in stock. Of course, that was before the explosion of internet shopping. And let's face it: music is one of those things that is really easy to shop for online...no worries about size or color. Now it's all based on price, price, price.
     
  16. Paul.S

    Paul.S Producer

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    For whatever it's worth for any Angelenos:

    Had pretty good luck selling some titles last night at one of the few remaining Wherehouse locations in L.A., the one on La Cienega across from the Beverly Center. Except for two CDs that were rejected because of scratches (which would have been bought for a coupla bucks each if they weren't scratched), the store bought everything I wanted to sell (several CDs and the original 2-disc Cast Away). Interestingly, since the stores and the Website maintain separate inventories, several titles that Wherehouse.com said they were "overbought" on and declined to purchase (the Titanic score and the Cast Away DVD) the store not only bought, but did so for more than the Website would have offered.

    Also interesting is that they purchased some things from me that have since been re-released or remastered despite my having been told in the past that, once that happens, they don't buy the original/earlier release used from customers anymore. (There is a new Digipak Cast Away and there are remasters of Babyface's Tender Lover, For the Cool In You and The Day; there's also an SACD of The Day.)

    Also, they do have a scant selection of used DVD-A and a surprisingly high number of copies of a couple dozen SACD titles. It seems like they sold a lot of these discs in the fall of 2002 (Wherehouse used price tags have dates on them) and people returned them because they didn't know that they were single layer Sony SACDs. Many have big, tacky "Must have Super Audio player" labels stuck on the front. So if you're looking for Train, Santana, Thriller, Celine Dion, James Taylor, Boston, Kenny Loggins, 52nd Street and other early Sony SACD titles for $7.99, check out the endcap in the used CD area.

    -p
     
  17. Ted Lee

    Ted Lee Lead Actor

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    et al -

    i agree that tower used to have a loyal fan-base. i mean, it was the *only* record store i used to visit. well, tower and rhino records in montclair. but, tower prices just became too outrageous.

    i agree that the only way to stay alive is to lower their prices. what's the economic theory about lower prices equaling greater volume? um...hello.... [​IMG]

    but i think the damage is done. nobody i know shops in m&p stores anymore. there is only one chain here in sac (dimples records) that is having any success. there is also a small store in downtown (can't remember the name) that has any sort of following.

    i'm glad to hear the warehouse on la cienega is still alive 'n' kickin. i used to work at the good guys there for a while. i was always going into that warehouse after work. i certainly dropped a decent amount of money there. i do recall them having a pretty good used cd selection.
     
  18. Paul.S

    Paul.S Producer

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    Ted:

     
  19. Greg_S_H

    Greg_S_H Executive Producer

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    The Wherehouse around here closed a couple of weeks ago. I only went there when other local stores happened to be out of a common title. Even then, the prices were high.

     

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