Kaspien Explained

Kaspien Holdings, Inc.
Type:Public
Former Name:Trans World Entertainment (1972-2020)
Traded As:NASDAQ:
Russell Microcap Index component
Founder:Robert J. Higgins
Location:Spokane, Washington, U.S.
Industry:Retail
Key People:Brock Kowalchuk (interim CEO)

Kaspien Holdings, Inc. (formerly Trans World Entertainment) is an American company that provides software and services for ecommerce. Kaspien Holdings operates on Amazon in the United States, Canada, United Kingdom, Spain, France, Italy, Germany, the Netherlands, Sweden, and India, as well as Walmart Marketplace, eBay, Google Shopping, and Target. Its interim CEO is Goldman Sachs veteran Brock Kowalchuk, who took over March 11, 2022.[1]

History

Trans World Entertainment Corporation

Based in Albany, New York, Trans World was formed in 1972 by Robert Higgins. It opened its first store, Record Town (formerly Record Land), in 1973. The company went public in July 1986 and has expanded through acquisitions of a number of smaller or failing companies including Strawberries, Coconuts, Camelot Music, and Wherehouse Entertainment.

On September 23, 2000, Trans World signed a definitive agreement to acquire the assets of WaxWorks, and the deal was expected to close by the end of October.[2]

As part of a 2002 settlement with 41 states over CD price fixing, Trans World Entertainment, along with retailers Musicland and Tower Records, agreed to pay a $3 million fine.[3] It is estimated that between 1995 and 2000 customers were overcharged by nearly $500 million and up to $5 per album.[4]

In February 2006, Trans World acquired the Musicland Group, which owned Musicland, Discount Records, Sam Goody, Suncoast Motion Picture Company, Media Play, and On Cue. The buyout included a handful of On Cue stores.[5]

Trans World operated at a net loss from 2006 to 2010. In fiscal year 2011 it turned a profit of $2.2 million (compared to a $31 million loss in FY 2010). The company closed some locations and increased margins on its products.[6]

Acquiring etailz, Inc.

In October 2016, Trans World acquired etailz, Inc, a third-party online retailer, for $76 million.[7]  

etailz was founded in 2008 by Josh Neblett, Sarah Wollnick (now Sarah Neblett), and Tom Simpson as GreenCupboards and had operated as a niche retailer of eco-friendly products.[8] The company rebranded to etailz in 2013 after acquiring Ecomom.[9]  

In January 2019, etailz laid off 20 percent of its workforce after Trans World reported a $14 million loss in the third quarter of 2018.[10] etailz's founder and CEO left the company shortly thereafter in March 2019.[11] In September 2019, etailz hired a new CEO, Kunal Chopra.[12]

In January 2020, Trans World sold its FYE segment for $10 million to Sunrise Records and Entertainment Ltd., severing its ties to physical retail stores and leaving etailz as its only remaining subsidiary.[13]  

In March 2020, Trans World reconstituted its board of directors and its CEO stepped down.[14] New members joined the board to reinforce the company's focus on ecommerce, including etailz founder Tom Simpson.

Sale and rebranding to Kaspien Holdings

On September 3, 2020, Trans World Entertainment rebranded to Kaspien Holdings (the name "Trans World Entertainment" was sold to Sunrise Records). Its remaining subsidiary, etailz, also changed their name to Kaspien, merging the two companies and solidifying the focus on ecommerce.[15]

Formerly owned chains before sale to Sunrise Records

St. Clairsville, Ohio and Medford, Oregon (Formerly nationwide)

Beaumont, Texas, Eatontown, New Jersey, Omaha, Nebraska, and Portland, Oregon. (Formerly nationwide)

Nationwide (mall-based and freestanding)[16]

Defunct

External links

Notes and References

  1. Kaspien Promotes CFO and Goldman Sachs Veteran Brock Kowalchuk to Interim CEO.
  2. Web site: Trans World Invests In Brick-And-Mortar. https://web.archive.org/web/20140318220350/http://connection.ebscohost.com/c/articles/3555204/trans-world-invests-brick-and-mortar . dead . 2014-03-18 .
  3. Web site: CD Price Fixing Suit Settled For $143 Million . Billboard . 2002-10-01 . 2016-04-26.
  4. Web site: Stephen Labaton . 5 Music Companies Settle Federal Case On CD Price-Fixing . The New York Times . 2000-05-11 . 2016-04-26.
  5. Web site: Trans World Entertainment Completes Asset Acquisition of Musicland Holding Corp.. 29 March 2006. Trans World Entertainment Corporation. 1 February 2020. 11 August 2020. https://web.archive.org/web/20200811161408/https://www.twec.com/investors/press-release/trans-world-entertainment-completes-asset-acquisition-of-musicland-holding-corp/. dead.
  6. Web site: DeMasi. Michael. FYE owner Trans World reports first fiscal-year profit since 2006. The Business Review. 8 May 2012.
  7. Corp. Trans World Entertainment. 2016-10-17. Trans World Entertainment Corporation Announces the Purchase of etailz, Inc., Digital Marketplace Retail Expert. 2020-09-17. GlobeNewswire News Room.
  8. Web site: Green retailer GreenCupboards says sales are on rise > Spokane Journal of Business. 2020-09-17. www.spokanejournal.com.
  9. Web site: 2013-04-24. GreenCupboards buys assets of Ecomom after founder's suicide. 2020-09-17. GeekWire. en-US.
  10. Web site: Etailz reduces staff following parent company losses The Spokesman-Review. 2020-09-17. www.spokesman.com.
  11. Web site: Etailz CEO and co-founder Josh Neblett no longer with company, executive says The Spokesman-Review. 2020-09-17. www.spokesman.com.
  12. Web site: Etailz names new CEO > Spokane Journal of Business. 2020-09-17. www.spokanejournal.com.
  13. Corp. Trans World Entertainment. 2020-01-23. Trans World Entertainment Corporation Announces Agreement to Sell FYE Segment. 2020-09-17. GlobeNewswire News Room.
  14. Corp. Trans World Entertainment. 2020-03-31. Trans World Entertainment Corporation Announces New Financing, Board Changes and Company Refocus. 2020-09-17. GlobeNewswire News Room.
  15. Web site: 'etailz' Rebrands as 'Kaspien' to Better Support Online Brand Growth. 2020-09-17. PRWeb.
  16. Web site: Sunrise Records to Acquire U.S. Entertainment Chain FYE Exclaim!.
  17. News: Trans World to buy CD World . . September 18, 2003 . .
  18. News: Trans World to buy bankrupt CD World . . September 19, 2003 . Greg . Johnson.
  19. News: Streetside, CD World Will Merge: Record Company's Local Stores Will Operate The Same Way They Have In The Past . https://web.archive.org/web/20150905113116/http://business.highbeam.com/435553/article-1G1-88599641/streetside-cd-world-merge-record-company-local-stores . dead . September 5, 2015 . . July 9, 2002 . Kwok . Chern Yeh . . subscription .
  20. News: Trans World absorbs Disc Jockey music chain . . October 31, 2000 . .
  21. Web site: Trans World Entertainment SEC 10-K Annual Report for Fiscal Year Ending February 3, 2001 . . February 3, 2001 . .
  22. Web site: Billboard. Nielsen Business Media, Inc.. 1985-09-21.
  23. Web site: Groovy old 1970 pic of Tower Records, San Francisco, CSN&Y "Déjà Vu "just released, only $2.88!.
  24. News: Tower Records' Struggle Reflected Industry's Turmoil . . December 28, 2002 . 114 . 52 . 45 . Ed . Christman . .
  25. News: On Cue brand will become Sam Goody . . May 12, 2002 . Andrew . Tellijohn.
  26. News: Best Buy converts On Cue stores to Sam Goody name . . April 22, 2002 . 5, 27 . 41 . 8 . Heller . Laura . .
  27. News: On Cue Rebranding As Sam Goody . . April 13, 2002 . 114 . 15 . 63 . Brian . Garrity . Matthew . Benz . amp . .
  28. Web site: Record and Tape Traders Towson . https://ghostarchive.org/iarchive/facebook/72556807678/10157007833987679 . 2022-02-26 . limited. www.facebook.com . 3 December 2019 . en.
  29. News: Record Factory to Sell 23 Stores to Wherehouse. Los Angeles Times. 1986-06-13. Groves. Martha.
  30. Web site: Billboard. Nielsen Business Media, Inc.. 1977-11-26.
  31. Web site: PUBLIC RECORDS DIRECTORY - Sterling Lanier . 2015-12-30 . 2017-02-15 . https://web.archive.org/web/20170215114259/http://publicrecords.directory/profiles/sterling-lanier.5512778.html . dead .
  32. https://books.google.com/books?id=JiUEAAAAMBAJ&dq=%22Record+Factory%22+Brisbane+-Byres+-Glasgow+-Melbourne+-CANBERRA+-australia+-&pg=PT97 Billboard - Feb 3, 1979 - Vol. 91, No. 5
  33. News: Spin Street to close its doors. 8 November 2017. WMC 5 Action News. 1 February 2020.
  34. News: Video Supplier Has New Chief . . December 31, 1993 . .
  35. News: Partnership Buys Control Of Strawberries Inc. . . September 1, 1994 . .
  36. News: Trans World closes on Strawberries deal . . October 9, 1997 . .
  37. News: New Strawberries Chief To Expand Music Chain . . October 25, 1989 . Daniel F. . Cuff.
  38. News: Video Company Chief, Wife Found Fatally Shot In Mansion Home . . August 22, 1989 . Anita . Snow.
  39. News: RIP Streetside Records Delmar . https://web.archive.org/web/20071226072848/http://www.playbackstl.com/content/view/6980/231/ . dead . December 26, 2007 . Playback STL . December 24, 2007 . .
  40. News: Streetside Records to close next month . https://archive.today/20130410172503/http://www.columbiatribune.com/news/local/streetside-records-to-close-next-month/article_2cd7f46e-5891-51e1-8b4f-0a8405b23425.html . dead . April 10, 2013 . . December 6, 2012 . Don . Shrubshell .
  41. News: Handwriting On The Wall Wee Three Record Outlet Spinning Into A Bigger Chain . . September 23, 1993 . Francesca . Chapman.
  42. Camelot Music Agrees to Purchase The Wall; Camelot Music and WH Smith PLC Announce Signing of Letter of Intent . . October 31, 1997 . . . May 14, 2017 . March 16, 2016 . https://web.archive.org/web/20160316071804/http://www.thefreelibrary.com/Camelot+Music+Agrees+to+Purchase+The+Wall%3b+Camelot+Music+and+WH+Smith...-a019987659 . dead .
  43. News: Bankrupt buyers woo The Wall. (Camelot Music Inc.) . . December 5, 1997 . Kasrel . Deni.
  44. News: Wall To Wall Sound Files Petition For Bankruptcy Relief In Phila. . . July 21, 1990 . Richard . Burke.
  45. News: Wall To Wall Stressing Software . . May 16, 1990 . Sheila . Simmons.
  46. Web site: Articles about Wherehouse by Date - Page 5 - latimes. https://web.archive.org/web/20160112193519/http://articles.latimes.com/keyword/wherehouse/recent/5. dead. January 12, 2016. Los Angeles Times. 7 January 2019.
  47. News: Wherehouse Files for Chapter 11 . . January 22, 2003 . Jeff . Leeds.
  48. News: Wherehouse Music stores' parent files for bankruptcy . . January 21, 2003 . .
  49. News: Court OKs Purchase of Wherehouse Stores . . October 1, 2003 . .
  50. News: TransWorld Trumps Sun Capital In Its Bid For Wherehouse . . October 11, 2003 . 73 . 115 . 41 . 0006-2510 . Ed . Christman . Google Books.
  51. Web site: SecondSpin - Buy and sell used CDs, DVDs, Blu-Ray and Games . 2017-11-02 . 2022-10-08 . https://web.archive.org/web/20221008013517/https://wherehouse.com/ . dead .

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