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:
“You must get your living by loving. But as it is said of the merchants that ninety-seven in a hundred fail, so the life of men generally, tried by this standard, is a failure, and bankruptcy may be surely prophesied.”
—Henry David Thoreau (1817–1862)