House of Music will close unless buyer can be found

Associated Press

One of Hawai'i's oldest retail businesses will close at the end of January if no buyer is found.

The 50-year-old House of Music is owned by National Record Mart of Carnegie, Pa., which has been operating under bankruptcy protection. The company also owns Waves Music in Pearlridge Center, and the Tempo Music stores in Queen Ka'ahumanu Center on Maui and Prince Kuhio Plaza in Hilo.

Those stores also would be closed if there is no buyer.

Creditors forced the company into Chapter 7 bankruptcy in June, seeking to have the company liquidated. In August, the bankruptcy was reclassified as a voluntary Chapter 11 reorganization. The company and its creditors also came to an agreement to keep the stores open through the fall while a buyer was sought.

The Federal Bankruptcy Court in Pittsburgh ordered the company, which owns more than 100 other stores in the United States and Guam, to start selling its inventory at discounts of 10 to 30 percent.

NRM acting chief executive Gary Ross said free downloading of music from the Internet, huge stores known for heavy discounting and bad corporate management contributed to the company's financial problems.

However, a local employee, who asked not to be identified, cited the Mainland owners' unfamiliarity with how local music sells.