Anderson's TV Closes
By Alan Wolf -- TWICE, 7/6/2009
REDWOOD, CALIF. — Anderson's TV, the Silicon Valley specialty chain, closed its doors last month after more than 32 years in business.
The self-described “Big Screen Specialist” succumbed to plummeting flat-panel prices, compressed margins and the weak economy, principal Dave Malloy told TWICE.
Malloy had been funding the company with outside resources for the past 18 months, and earlier this year closed two of its four stores and sold off its service operation.
“I was trying to find a way to be profitable, but after 16 months we had a very large cash bleed,” he said.
Malloy found it impossible to compete on price with mass merchants, who now offer a full array of tier-one products, and still provide a full suite of delivery, installation and repair services, he said.
Anderson's comp sales were up 80 percent in units, but gross dollars and gross profits were both down. “Sixty-five-inch plasma was $6,999 before Christmas — now it's $2,999. I couldn't generate enough volume to stymie the price declines, and it's hard to make it work on sub-10-point margins,” he said.
Compounding the problem was the ailing economy, which is more acute in California; higher finance charges amid the credit crunch; and competition from Web-based retailers, which have an immediate 10 percent price advantage by not collecting sales tax, Malloy explained. “It was a wicked combination of events,” he said.
Anderson's started as a local gas station/garage in 1934. Malloy purchased the business in 1978 and built it into a $44 million, full-service chain with a focus on big screen TVs. The PRO Group dealer's assortment also included audio, furniture and other home-theater products. Malloy opted to close shop via an Assignment For Benefit of Creditors (ABC) rather than Chapter 7 to ensure that his employees, taxes, fees and creditors would be paid. An assignee, Mountain View, Calif.-based Sherwood Partners, is presently monetizing the company's assets.
Anderson's closure dovetails with the shuttering of a more recent competitor, San Carlos, Calif.-based UV Discount, which operated four stores throughout the San Francisco area.
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purchased a mitsubishi 73" TV in December 2007 and purchased a 5-year warranty on it. I have not received any letter from outside warranty. What happens to my warranty.
Kojo - 2009-1-10 18:21:16 EDT -
Purchased 60" flat screen tv there three years ago with five year warranty using there credit card. Can't find the receipt and we are having problems with our TV. Anyone know what we can do to have TV repaired or get replacement bubls?
Mary Whitener - 2009-30-8 17:24:02 EDT -
I found this email
Disclosure upfront....Anderson's TV is closed and my company - TechExpert Express - is now handling service for them.
I'm posting this not because I want to review Anderson's but because we've heard from many customers who made purchases there and need service - particularly under their extended warranty plan - and are now confused over how to obtain the service they paid for.
If you're a customer in that situation, we can handle that for you, you can reach us by dialing Anderson's TV Service number (650.366.9525), calling us directly at 800.846.8945, or emailing us through www.teexp.com.
Anderson's WAS a great company with ownership and staff that really cared about customer service - enough to have wanted to make sure their customers were handled well even when they're gone...
Let us know if there's anything we can do for you.
TechExpert Express!
ed - 2009-14-8 13:13:32 EDT -
Your warranty is probably backed by an outside warranty company, meaning that it's still valid. Usually the warranty company sends you information about 30 days after you purchase the warranty. Find that letter and contact the warranty company directly.
Dan - 2009-28-7 12:11:35 EDT -
I've just found out about Anderson's closing after I called all the four numbers (Santa Clara, Redwood, Dublin and Concord). I bought a Sony LCD bulb 2 years ago for $200. Since the original bulb only lasted one and a half years, I decided to purchase the warranty bulb (3 years) for $140. Now the bulb needs replacement so I called those numbers and I got the message that they are no longer in service. So I went to the internet and researched. I found your article so here I am. How do I get my warranty or my money back. They never informed me they are going to close.
Andres Balance - 2009-27-7 22:57:16 EDT
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