Posted on Fri, Jan 14, 2011 : 2:15 p.m.
Ann Arbor's Encore Recordings owner plans retirement as employees hope to buy store
By Paula Gardner
Encore Recordings owner Peter Dale is ready to retire - and he figures the upcoming lease expiration for his East Liberty Street store is the perfect time to do it, according to a report in the Metro Times.
Now Dale and a group of his employees are trying to value the store so that the employees can purchase it, the Metro Times says.
If that happens, Encore fans - and there are many of them, both in Ann Arbor and beyond - will still find the used recording store open after long-time owner Dale moves on.
Read the full story as told by the Metro Times here.
Meanwhile, Here's a recent AnnArbor.com story about the store's mascot, Carmen, dying in late 2010.
Photo: Peter Dale inside Encore Recordings.
Comments
aanative
Sat, Jan 15, 2011 : 11:40 a.m.
Good for Peter! He's done a terrific job under some trying circumstances over the years and it would be great to have more audiophiles assume the business. Encore is my favorite A2 business and it truly has an unparalleled selection. I always prefer interacting with Peter over most of the laid-back crew, but have always gotten help from them when I've asked for it. Cheers Peter, and best wishes for your retirement years!
ShadowManager
Sat, Jan 15, 2011 : 11:22 a.m.
Y'all must be anti-social. The staff at Encore is superb...just laidback.
smacks
Sat, Jan 15, 2011 : 8:22 a.m.
I concur with Don on this one. Although the selection is good, the help always seems rude or indifferent. Much prefer to patronize PJs.
Don
Fri, Jan 14, 2011 : 11:18 p.m.
I'll be honest, I can't stand going into Encore; the employees there are always extremely rude and disengaged with all of the customers (at least that's how it seems to me). While they do have a large collection, the extreme lack of customer service prevents me from taking advantage of that selection; it's my absolute last resort store (even after eBay). I've never been inside Encore while the owner is there, so I can't give any thoughts on him. As long as PJ's isn't going anywhere I'm happy, they may not have as large of a selection, but every time I'm there, I spend hours talking to the owner (Jeff) and his friends who are in there with him about anything and everything music related, they for one know how to keep a customer happy. If Encore closes it won't be any big loss.
Andrew Thomas
Fri, Jan 14, 2011 : 9:54 p.m.
I sincerely hope the staff will be able to keep Encore going -- it's about the only place in town with any real selection of classical music. How I miss Schoolkids Records!
John B.
Fri, Jan 14, 2011 : 9:34 p.m.
Yes, plus an inventory valuation TBD. That number will be whatever they agree on. The hard part is almost always the 'goodwill' number.... I really hope this employee buyout works, but I can almost guarantee it will be tough. There probably isn't much profit there now, even before the current owner decides whether he can take any salary or not each month. Small retail businesses are very difficult to make/keep profitable, especially if you don't own your building (see rent discussions above, for example).
bunnyabbot
Fri, Jan 14, 2011 : 5:23 p.m.
three times plus whatever they negotiate for the inventory 1/3-1/2, although cds they might only have a value of $1 a piece for the purposes of buying the stock.
John B.
Fri, Jan 14, 2011 : 4:29 p.m.
Yes, about three times (true) net is a good starting point for a small business.... Many trade for less, though, especially in the current economy.
bunnyabbot
Fri, Jan 14, 2011 : 3:57 p.m.
http://www.businesstown.com/valuing/guideline.asp my guess this fits into the 2-4 times, as most small businesses don't get valued above it.
Tom Joad
Fri, Jan 14, 2011 : 3:38 p.m.
I wonder what the rent is at that location. Got to sell an awful lot of cds to make the rent, I'm sure. Amer's on State pays over $20,000 a month!
ShadowManager
Fri, Jan 14, 2011 : 3:32 p.m.
These "employees buying the store" things almost never actually materialize, but in this case, I dearly hope they do purchase the store and keep it going!