2001 Bankruptcy
In 2001, tough competition, narrow margins, and the availability of free music downloads from the Internet, forced the chain to declare bankruptcy. Most of its 30 corporate-owned stores closed. The Sniderman family was underwriting the chain's debt of $15 million for the previous five years and finally could not continue to lose money. Under new management, Sam Sniderman's sons Jason and Bobby Sniderman reopened the Yonge Street store in 2002, along with 11 franchise stores outside of Toronto. The franchise stores were not a part of the bankruptcy filing, but the corporate stores were. Eventually, all but one of the corporate stores closed. The last corporate store in Halifax, Nova Scotia was shut down on February 20, 2007.
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Famous quotes containing the word bankruptcy:
“The heritage of the American Revolution is forgotten, and the American government, for better and for worse, has entered into the heritage of Europe as though it were its patrimony—unaware, alas, of the fact that Europe’s declining power was preceded and accompanied by political bankruptcy, the bankruptcy of the nation-state and its concept of sovereignty.”
—Hannah Arendt (1906–1975)