Founding and expansion
Peterson spent ten years working at the Jolly Green Giant Co., rising to eastern regional manager in charge of 17 food processing plants in the United States and Canada. However, the western regional manager was the son of the company's president, so in 1963 Peterson obtained a franchise from Muntz television, sold his home for $10,000 USD, which he put into the business,[4] and moved with Gloria to Portland on the advice of friends.[1]
He opened his first store at Southeast 82nd and Foster Road in 1964. Peterson paid himself a salary of $100 a week and $50 a week to Gloria, who was the controller of the business.[1] In 1964, his first year in business, Peterson had revenues of $300,000. By 1989, Peterson was selling $30 million per year.[5] It was during this period that Peterson first achieved fame in Portland and throughout the Pacific Northwest.[2]
By the early 1980s, Peterson had become one of the largest home electronics dealerships in Portland, alongside Smith's Home Furnishings, Stereo Super Stores, Montgomery Ward and Sears. Peterson went on to open stores in Eugene, Gresham, Hillsboro, North Portland and as far away as Spokane, Washington, but later closed these stores, citing an inability to offer the personal service by appearing on the floor alongside his sales staff.[1] The Petersons' children also worked in the business, daughter Kathy as a personnel manager and son Keith as a partner in an affiliated electronics import-export business, operating out of Boston.[1]
Bankruptcy and reorganization
In September 1989, Peterson outbid two challengers to acquire Stereo Super Stores, whose parent company had filed for bankruptcy the month before, paying $940,000 plus another $1,000,000 for inventory. The acquisition included a car stereo specialty shop at Mall 205, Car Stereo East.[6] Peterson continued to operate the franchise's locations at Jantzen Beach and Washington Square Too without a branding change until March 1991, when he renamed them Tom Peterson Super Stores, as he did his original home electronics store at 82nd and Foster. Peterson explained that the original stores were performing better than the newly acquired outlets, so he decided to combine them. His other two stores and car specialty store were unaffected.[7]
In August 1991, Peterson closed his Jantzen Beach location[8] and in October filed for Chapter 11 bankruptcy protection, listing liabilities of $7.5 million owed to 283 creditors on assets of $2.7 million. He also faced lawsuits from suppliers and AT&T Commercial Finance. At the time of the filing, Peterson said: "I should have listened to my wife. She said, 'Don't buy Stereo Super Stores.' She was right."[9]
Tom Peterson & Gloria's Too!
In September 1992, Peterson reopened for business at his original location, an 11,000 sqft showroom[12] at 8130 Southeast Foster Road,[5] under the name Tom Peterson & Gloria's Too![12] Peterson's son-in-law Robert Condon became president, daughter Kathy the store's accountant[13] and Gloria Peterson resumed duties as chief financial officer. Peterson himself remained the primary public face of the company, and resumed his familiar advertising. Condon raised a portion of the new venture's seed money from the sale of Tom Peterson memorabilia, having bought hundreds of wristwatches and alarm clocks from the bankruptcy trustee, then reselling them at a profit.[12]
By 1995, Peterson and a staff of 18 were selling $5 million worth of household durables per year, having shown a profit in 23 of 25 years.[5]
