Harmony House Tries To Pick Up The Tempo
Retailer cuts prices to speed up liquidation

By Lorene Yue
The Detroit Free Press Business Writer
August 22, 2002

Harmony House executives are offering bigger discounts in hopes of stimulating going-out-of-business sales.

The Troy music retailer is slashing prices by 40 percent to help move merchandise out of stores by the end of September. The company had marked prices 25-percent off prior to Wednesday's decision.

"Our liquidation plan is going much slower than anticipated," said Bill Thom, Harmony House president and chief executive officer.

All merchandise has been consolidated into the Berkley, Lincoln Park, Grosse Pointe Woods, Hazel Park, Canton, Sterling Heights and Warren stores as well as the Royal Oak classical store.

"It is imperative that we step up the pace and eliminate inventory from store racks and warehouse shelves," said Patrick O'Keefe, head of Harmony House's liquidation effort. "Previous discount levels were simply not moving product up the retail food chain in a timely enough manner."

Executives of the privately held chain announced on July 15 that poor sales had forced them to dissolve the company after 55 years in the music business. Harmony House was once one of the largest independently owned music retailers in the country with 38 stores at its peak in 1999. As sales fell, so did the number of stores. Executives closed 28 stores in the last 19 months and at least 200 employees have lost their jobs.

Company officials blamed the chain's downfall on increasing competition from discount behemoths Wal-Mart, Best Buy and Circuit City as well as Internet piracy.

Contact LORENE YUE at 313-223-4651 or yue@freepress.com.