HIFi House ceases opetaions

Joe Whip · Jun 4, 2014

For those of you in the Philly area, one of the largest specialty audio and video retailers, HIFi House, shockingly ceased operations today. They had quite a few of the biggest names in audio on their roster. Here is the link to the news.

http://www.bizjournals.com/philadelphia/news/2014/06/04/hifi-houseshuts-down-operations.html

Davkj · Jun 4, 2014

This is quite a shock. The had announced that they were relocating the Jenkintown store a few months back, but the store never closed down. I always found them helpful and friendly; quite different from some others in the area.

Joe Whip · Jun 4, 2014

Here is a link to an article in CE Pro.

http://www.cepro.com/article/veteran_integrator_htsa_icon_hifi_house_abruptly_closes/

Alan Sircom · Jun 6, 2014

If the company shut down this suddenly, and was involved in CI, it's probably a contract problem. If you spec a high-end home for distributed audio, HVAC, home theater, comms, networking, alarms, etc, you can sometimes have $250k worth of customer's inventory either in your storeroom or in escrow. The time from pre-wire to final sign off can be several years, and if something goes badly wrong during the contract, it can kill a small company within a day.

The good news is they often reappear, and if they are good, they bring their client base with them. Here's hoping!

Elliot G. · Jun 6, 2014

Alan Sircom said:
If the company shut down this suddenly, and was involved in CI, it's probably a contract problem. If you spec a high-end home for distributed audio, HVAC, home theater, comms, networking, alarms, etc, you can sometimes have $250k worth of customer's inventory either in your storeroom or in escrow. The time from pre-wire to final sign off can be several years, and if something goes badly wrong during the contract, it can kill a small company within a day.

The good news is they often reappear, and if they are good, they bring their client base with them. Here's hoping!

That is not the issue. This was a banking issue and was stated as so in the releases.

Alan Sircom · Jun 6, 2014

Elliot G. said:
That is not the issue. This was a banking issue and was stated as so in the releases.

OK, thanks. Shame

Joe Whip · Jun 6, 2014

Yes, the bank called in the loans and have taken control. The assets will be liquidated. I will keep an eye out for the announcement of a liquidation sale..

mep · Jun 6, 2014

Joe Whip said:
Yes, the bank called in the loans and have taken control. The assets will be liquidated. I will keep an eye out for the announcement of a liquidation sale..

That's exactly what happened to Counterpoint.

taters · Jun 14, 2014

mep said:
That's exactly what happened to Counterpoint.

I believe this is the future for high-end brick and mortar stores.

MylesBAstor · Jun 14, 2014

taters said:
I believe this is the future for high-end brick and mortar stores.

And why hard evidence do you have other than beliefs??? Did you actually read the story of what went on here?

Joe Whip · Jun 15, 2014

Considering how many high end stores have disappeared, I wouldn't be surprised in a lot more do in the next few years. Same with the high end manufacturers. Especially those that do not cater mostly to the ultra high end, which is what really seems to be selling the most these days worldwide. I have spoken with some about this very topic.

Asamel · Jun 15, 2014

Joe,

If you hear of a sale would you post it here?

Joe Whip · Jun 15, 2014

I will.

taters · Jun 15, 2014

Joe Whip said:
Considering how many high end stores have disappeared, I wouldn't be surprised in a lot more do in the next few years. Same with the high end manufacturers. Especially those that do not cater mostly to the ultra high end, which is what really seems to be selling the most these days worldwide. I have spoken with some about this very topic.

I agree 100% with you. I made a comment earlier and someone jumped all over me like I'm coming from left field.

MylesBAstor · Jun 15, 2014

Joe Whip said:
Considering how many high end stores have disappeared, I wouldn't be surprised in a lot more do in the next few years. Same with the high end manufacturers. Especially those that do not cater mostly to the ultra high end, which is what really seems to be selling the most these days worldwide. I have spoken with some about this very topic.

And that's any different than what's gone on over the last thirty years? Show me the rates of stores closing and stores opening has changed. To me, the only difference is that new stores are taking on less overhead like rent.

taters · Jun 15, 2014

MylesBAstor said:
And that's any different than what's gone on over the last thirty years? Show me the rates of stores closing and stores opening has changed. To me, the only difference is that new stores are taking on less overhead like rent.

There are a lot more stores closing than opening.

MylesBAstor · Jun 15, 2014

taters said:
There are a lot more stores closing than opening.

Show us. Prove that it's any different than how business has been conducted in high-end audio for the last 20 years+.

You still haven't answered my first question either.

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HIFi House ceases opetaions

Joe Whip

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