Failures

Failures

by Mike Masnick


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Wherehouse Music Stores Files For Bankruptcy, Blames Downloaders

from the blame-everyone-but-yourselves dept

It's funny, but when a normal business finds the market changing on them, they tend to realize they need to change as well. That doesn't seem to happen with any company somehow related to the entertainment industry. The market around them changes, and they just stand still, while yelling and screaming - and blaming everyone else. The latest to play the blame game is Wherehouse Music, who is filing for bankruptcy (again), while blaming all those evil music downloaders. Give me a break. This is the same company that just came out of bankruptcy protection a few years ago and changed almost nothing in their stores to keep up with the times. Also, considering a large percentage of their business is DVD sales - a market that has been growing tremendously over the past couple of years, it seems a bit disingenuous to blame it all on music downloaders.

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  1. The Post-Music Era

    by dorpus - Jan 22nd, 2003 @ 6:03am

    If music companies produce low-quality trash, and make even that difficult for consumers to obtain, then you have a market failure. Perhaps we are entering an era when music will just be produced by hobbyists, with nobody expecting to make money.

    My pet peeve is when local coffee shops or bookstores bring in third-rate local musicians to "liven the place up". It's a repellent, really. Nobody pays attention to them, and I've made a point of sitting in front of them with my back turned, and changing seats whenever a new seat opens up.

    (reply to this comment) (link to this comment)

  2. Upper management

    by David - Mar 17th, 2003 @ 2:09am

    As a former Store Manager with almost ten years experience with Wherehouse...the most distressing thing about Wherehouse was it's failure to "listen" to their "individiual" stores. Different locations offered different challenges. But most importantly...their was never any investment in advertising the business. I haven't seen a Wherehouse commercial in almost ten years and that was limited to California. I couldn't even get a small budget to advertise locally. It didn't help matters that their were a number of former "Blockbuster" district managers who spent a great deal more time being "yes" men than creating new ideas to drive the business. And when it was obvious to any manager that the company "must" be struggling, they always suggested Wherehouse was in no danger of collapse. They repeated the same stupid mistakes they made in 1994 which put them in Chapter 11. For myself...working 60+ hours a week...6 days a week. Doing product pulls for 18hrs. straight because I had no payroll and frustrated to see the same product I shipped arrive back in my store within a week(sometimes before I shipped it out; gave me a real sense of the ignorance or lack of "urgency" on the part of the corporate office. Simply put, it was robbing Peter to pay Paul. Eventually the wall had to come crumbling down. The tragedy is the great deal of talented store managers who's live's were dedicated to the Music/film entertainment industry and were exploited by the "higher" ups who kept insisting they understood their concerns. Their reward ( as in my case) was to be replaced by someone who was willing to "kiss their ass" and not rock the boat. Well, the boat my friends is sinking and I for one am glad I won't be aboard when it's "sunk". D.S.M.

    (reply to this comment) (link to this comment)

  3. Re: Upper management

    by Serene - Apr 1st, 2003 @ 12:19pm

    David,

    I am doing a formal Proposal with my group at Cal State Fullerton. We are trying to get a hold of a Marketing, Communications, and HR representative to interview. We want to ask him or her how they are dealing with this communications crisis. We want to interview someone in the corporate office in Torrance who is willing to discuss this. We are going to write a formal report on whether or not we feel the way Wherehouse handled their communications crisis was adequate. Also, we will comment on how we would have handled the situation. I am very interested in your opinions and resources. Please let me know.

    catwoman78meow@yahoo.com

    Serene

    (reply to this comment) (link to this comment)

  4. No Subject Given

    by Anonymous Coward - May 2nd, 2003 @ 2:44am

    I worked as a manager for wherehouse for about 3 years during the buy out of blockbuster video. i can tell you 3 reasons why the went under.
    #1 you can't listen to anything! #2 the return policy (if it wasn't the song you wanted tuff luck) #3 they paid there managers nothing. i am glad i left when i did i went from making $7.00 an hour as a 1st assistant manager to $18.50 an hour as an assistant manager at another retail company. they didn't listen to there people's sugestions.

    (reply to this comment) (link to this comment)

  5. Re: No Subject Given

    by john smith - May 14th, 2003 @ 3:21pm

    I was recently laid off at wherehouse music at garland. I worked there for nearly 10 months as
    a stocker. One reason why the company filed for ch. 11 was that people wouldn't buy cds for almost
    20 dollars when they can burn it or buy it at a lower price at another store.

    (reply to this comment) (link to this comment)

  6. Re: Upper management

    by Gabby - Apr 16th, 2004 @ 6:50am

    Hi can you send me more about this?
    I'm doing a debate for school. We'er debating if downloading music should be illegal. I'd like to have a good look at all sides to this. Thanks!

    (reply to this comment) (link to this comment)

  7. Re: The Post-Music Era

    by Anonymous Coward - May 10th, 2006 @ 6:27pm

    Personally, I enjoy live music. It especially pleasant when it is unexpected, like in a characteristically noncosmopolitan area like mine. Anyone who would turn their back on an entertainer while they are performing is just an oaf. Truely.

    (reply to this comment) (link to this comment)

  8. My thoughts

    by Jason Waldron - Jul 2nd, 2006 @ 6:16am

    I worked for Wherehouse Music for 9 years, most of my time in San Fransisco area but also in the Metro Detroit area. I just wanted to say that it was the most enjoyable time in my life. It is sad that the company is no longer indapendant however I am glad to see that the name is still around. I was the Store Director for the Sutter and Kerny location and several others. I miss it and one day will rejoin the entertainment industry. I am now a DM at Bed, Bath and Beyond, and I am having fun.

    (reply to this comment) (link to this comment)

  9. by Marc - Aug 9th, 2006 @ 7:47am

    Thats too bad. Because where I live Wherehouse use too sell used CDs like hott cakes. But I guess the problem was there new CDs where way over priced. I think that if someone had a few better ideas Wherehouse could of done better. Bottem line is in my opion Cd burning has nothing to do with putting Wherehouse under. I know a lot of music fans who rather buy Cds than Download Cds. But I can see why many people download. Who wants to spend $20 dollars for a CD?

    (reply to this comment) (link to this comment)

  10. Re: Re: Upper management

    by Maria Sol Villarruel - Jan 18th, 2007 @ 10:57am

    Serene, I am very interested in what your findings were on this subject. Please email me if you get a chance.

    (reply to this comment) (link to this comment)

  11. The Demise of Wherehouse Music

    by S Hernandez - Apr 10th, 2007 @ 12:26pm

    I worked at WEI for 8+ years. It was some of the greatest years of my life, where I discovered valuable skills & experience due to a LACK of support from corporate. I received numerous awards & pats on the back, but blindly stayed on with a promise for future changes. Within my time at WEI I witnessed the company change multiple management programs & marketing campaigns. None of which ever seemed to be competitive to the current industry standards. Despite constant input & suggestions from those in the field, nothing changed including their salary structure. I lost numerous employees due to frustration in wages. Most went to other retailers paying much more. I basically trained managers for the retail indusrty, because wherehouse couldn't retain them. After doing 3 months of double shifts with no days off, (for a menial salary & no overtime), along with the pleadings of my husband & children I put in my notice. Although, I was offered a pay increase it came too little too late. Along with my Dm, (I was his assistant), & 17 other managers & assistants we went on to Gamestop. Each had the same complaint... lack of support & pay for HUGE expectations. I could talk about this all day... There's so much more to the story. WEI did not get hurt by Illegal downloads... There were hurt by their own ignorance!

    (reply to this comment) (link to this comment)

  12. Re: The Demise of Wherehouse Music

    by Angie - Jul 11th, 2007 @ 2:57pm

    My sister worked at Wherehouse music for years then quit to be a stay at home mom... She never received her retirement money...? Do you know how she would go about recovering it?

    (reply to this comment) (link to this comment)

  13. by Mr Nobody - Jul 21st, 2007 @ 11:08pm

    I am surprised that how long this thread has lasted. The first article was written back in Jan of 2003, and more than 4 years later, there were still new comments.

    I discovered this board because I was reading the wiki on wherehouse.. is that how everyone arrived at this page?

    (reply to this comment) (link to this comment)

  14. 6 years of service

    by Serop - Apr 14th, 2008 @ 12:52am

    I also worked for Wherehouse Music for 6 years in Fresno Ca, I worked my way up from being a clerk to assistant manager... after a couple of transfers I ended up in Southern Ca a store manager for the Laguna Niguel store... well that lasted about a week cause some random guy came in and put up "store closing" signs, the pay sucked and upper management was horrible but I still loved my job.

    (reply to this comment) (link to this comment)

  15. Re: The Post-Music Era

    by r - Jul 14th, 2008 @ 8:37am

    you can't bitch about musicians until you go up there and try it, douche bag. it's a lot harder than v,c,v,c,end.

    (reply to this comment) (link to this comment)

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