- A/V specialty chain MyerEmco is going out of business.
The privately held dealer, which served the Washington D.C. market for the past 55 years and helped set the standard for the independent A/V specialist, said it succumbed to the prolonged recession and a credit squeeze that left it without sufficient working capital.
at all seven stores will begin on Friday, Feb. 12, and are expected to run for
the next 60 days.
Myer said he had "tried to stem the tide" for the past 15 months by cutting
expenses, closing a store and trimming staff - including former president Gary
Yacoubian - and even sold a home in
order to put the proceeds into the business.
But "the economic
downturn was like a light switch," he told TWICE, as revenues plummeted by upwards
of 35 percent.
Compounding the effects
of the recession were declining video margins and average selling prices, he
said, as well as unfavorable payment terms by vendors that essentially forced
the family business to finance manufacturers.
Myer believes he
could have made a go of it from a base of three core stores, but was unable to
extricate the company from its lease obligations.
He was finally
forced to pull the plug after his bank refused to extend additional credit to
the struggling chain.
Myer said his
immediate priority is to pay back business partners and secured creditors,
although going forward he hopes to acquire the MyerEmco name and customer list.
The company was
founded in 1955 as a ham radio repair shop by Myer's father Ed, and generated
$35 million in CE sales in 2008, according to the TWICE Top 100 retail rankings.
An ad signed by
Myer announcing the fire sale reads in part, "Unfortunately, our greatest sale
ever will be our last. It's sad but true. After 55 years of serving the
Washington-area community, MyerEmco Audio Video will be closing its doors
forever. As a family-operated business, we've outlasted many high-profile
competitors, but we couldn't outlast this Great Recession."
The liquidation follows
that of New England CE, appliance and furniture chain Bernie's,
which is expected to shut its doors later this month.