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.
Read more about this topic: Sam The Record Man
Famous quotes containing the word bankruptcy:
“A woman’s whole life is a history of the affections. The heart is her world: it is there her ambition strives for empire; it is there her avarice seeks for hidden treasures. She sends forth her sympathies on adventure; she embarks her whole soul on the traffic of affection; and if shipwrecked, her case is hopeless—for it is a bankruptcy of the heart.”
—Washington Irving (1783–1859)