A&B Sound

A&B Sound was a Canadian consumer-electronics and music retailer founded by Fred Steiner in 1959. Its first store operated at 571 Granville Street in Vancouver, and the business moved in 1970 to 556 Seymour Street, a location that became closely associated with the brand. The original merchandise mix consisted of televisions, stereos and radio equipment; recorded music was added during the first year and later became one of the chain's most important categories. The company developed from a Vancouver specialty store into a Western Canadian chain. It opened a second location in Victoria in 1977 and added stores across the Lower Mainland, Vancouver Island and the Okanagan during the 1980s and early 1990s. In 1993, A&B Sound entered Alberta, followed by further expansion into Saskatchewan and Manitoba. At its height, the chain operated in several Western Canadian provinces and sold a broad range of consumer products, including home audio components, speakers, televisions, home-theater equipment, car audio, records, cassettes, CDs and DVDs. Some locations also contained bookstore departments, although those sections were largely removed by the beginning of the 2000s. A&B Sound became particularly prominent in Vancouver's music-retail market because of its aggressive pricing. Its low prices and broad selection made it a powerful competitor to chains such as A&A Records and Tapes, Sam the Record Man and, later, HMV. The chain's pricing strategy helped establish Vancouver as one of Canada's least expensive major markets for recorded music, but it also contributed to intense competitive pressure across the local sector. Consumer-electronics specialists and mass merchants increasingly entered the same categories, while online retail and changing media consumption weakened the traditional store-based model. Fred Steiner retired in 1987 and was succeeded as president by his son Nick Steiner. Nick later became chairman, while Tim Howley assumed the roles of president and chief executive officer in 2001. By the mid-2000s, A&B Sound was carrying substantial debt and faced pressure from Future Shop, Best Buy, HMV, Wal-Mart and other retailers. In early 2005, the company sought protection under Canadian bankruptcy legislation with reported debt of C$57 million. A proposed sale to Sun Capital Partners Group was not approved by creditors; instead, the company was acquired by Richmond, British Columbia-based Seanix Technology, led by Paul Girard. The new ownership attempted to reduce losses by closing or relocating stores and concentrating on British Columbia and Alberta. Numerous branches were shut between 2005 and 2008, while some locations were moved and a small number of new or planned sites appeared. The retrenchment did not restore the chain. Store closures accelerated during 2008, including the historic Victoria location, Nanaimo, Calgary North, the remaining Vancouver stores, Langley, Pitt Meadows, Edmonton, Abbotsford and North Vancouver. A&B Sound officially announced that it had gone out of business on November 7, 2008, when its final remaining store closed. Residual inventory was eventually liquidated through an auction in Vancouver in June 2011.

A&B Sound was established by Fred Steiner in Vancouver in 1959. Its first premises were at 571 Granville Street. In 1970, the retailer moved to 556 Seymour Street, where it sold televisions, stereos and radio equipment and added recorded music to its assortment. The Seymour Street store later became a major part of the chain's identity and helped anchor its position in Vancouver's downtown retail market. Expansion began with a Victoria store in 1977. During the following decade A&B Sound enlarged its Vancouver operation, opened a Hastings Street branch near Burnaby in 1981 and added another Vancouver location on South West Marine Drive in 1984. Fred Steiner retired in 1987, and his son Nick took over as president. The company then expanded into Surrey, Burnaby's Metrotown area and Nanaimo. In 1991, the Hastings operation moved to a larger site near the Pacific National Exhibition, while Fred Steiner died that same year. A Kelowna store followed in 1992. The chain entered Alberta in 1993 with stores in Calgary and Edmonton. Additional outlets followed in south Edmonton, Calgary, Lethbridge, Red Deer and other Western Canadian markets. A&B also opened in Abbotsford and later entered Regina, Saskatoon and Winnipeg. By 2000, its footprint extended across British Columbia, Alberta, Saskatchewan and Manitoba. Some branches included bookstore sections, but these departments were mostly discontinued by the early 2000s. Music retail was central to A&B Sound's reputation. The chain was known for discount pricing and a large selection of records, cassettes and CDs. Its pricing frequently undercut competitors, including A&A Records and Tapes and Sam the Record Man. Contemporary commentary attributed both Vancouver's low recorded-music prices and some local chain failures to A&B's competitive approach. HMV faced a difficult market when it entered the Vancouver area, while Tower Records reportedly considered but did not pursue Canadian expansion into Vancouver. A&B's competitive influence later extended to DVDs and electronics. The business environment became more difficult during the 1990s and 2000s. Future Shop expanded its music range while retaining an aggressive electronics pricing model. HMV, Wal-Mart and Best Buy also competed for overlapping customers, and Best Buy acquired Future Shop. A&B Sound's reliance on physical stores and exposure to intense price competition contributed to financial deterioration. In early 2005, the company filed for protection under Canadian bankruptcy rules with reported debt of C$57 million. A proposed sale to Sun Capital Partners Group was not accepted by creditors. Seanix Technology, a Richmond-based Canadian computer manufacturer led by Paul Girard, became the purchaser instead. Seanix's stated approach was to close or relocate unprofitable branches and focus on British Columbia and Alberta. The restructuring included layoffs and a long sequence of closures. Winnipeg's two stores closed in 2005; the Hastings Street branch closed in January 2006; Red Deer, Regina and Saskatoon followed in August 2006. The downtown Calgary store also closed, while some remaining branches were relocated and new sites opened or were proposed in places including North Vancouver, Pitt Meadows and Langford. Several plans were abandoned, including a proposed Chilliwack store. The chain's final collapse occurred in 2008. Victoria was announced for closure in April, and a proposed association with the Audiotronic chain did not develop further. Nanaimo closed in July, followed shortly by Calgary North. The Seymour and Marine Drive stores closed in August, as did branches in Langley and Pitt Meadows. South Edmonton and Abbotsford closed in October, with limited reopening for liquidation activity, and North Vancouver closed on November 7. On that date A&B Sound formally announced that it had ceased business. The company had also withdrawn its Wells Fargo credit card in October without issuing a replacement. Remaining inventory was not immediately resolved, but Able Auctions later sold stock in Vancouver in June 2011.

1. 2011Residual inventory liquidation

   Remaining stock is offered through an Able Auctions liquidation in Vancouver.

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2. 2008Final store closures

   The remaining store network shuts down progressively, and the company announces that it has gone out of business on November 7.

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3. 2005Bankruptcy protection and ownership change

   A&B Sound seeks bankruptcy protection and is subsequently acquired by Seanix Technology after a proposed Sun Capital transaction fails to receive creditor approval.

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4. 2001Leadership transition

   Nick Steiner steps aside as president and remains chairman; Tim Howley becomes president and CEO.

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5. 1993Expansion into Alberta

   The chain enters Alberta with stores in Calgary and Edmonton.

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6. 1987Nick Steiner becomes president

   Founder Fred Steiner retires and his son Nick assumes the presidency.

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7. 1977First Victoria store opens

   A&B Sound opens its second store in Victoria, beginning a broader British Columbia expansion.

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8. 1970Move to Seymour Street and addition of music

   The Vancouver store moves to 556 Seymour Street, and recorded music is added to the original television, stereo and radio assortment.

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9. 1959A&B Sound is founded in Vancouver

   Fred Steiner establishes A&B Sound and opens its first store at 571 Granville Street.

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A Western Canadian value-oriented specialty retailer known for aggressive pricing and broad selection in music, audio and consumer electronics.

• Home audio equipmentAudio electronics1959

  Home audio was the retailer's foundational category, including stereo systems and related components for household music listening. The category connected the original store concept with the chain's later reputation as a specialist in affordable audio equipment.

• SpeakersAudio electronics

  Speakers formed a core part of A&B Sound's audio assortment and were sold for home stereo and broader home-entertainment setups. They complemented the chain's equipment and recorded-music businesses.

• Televisions and radiosConsumer electronics1959

  Televisions and radio equipment were among the products sold by the original Vancouver store. These categories remained part of the broader consumer-electronics proposition as the retailer expanded.

• Recorded musicMusic retail1959

  A&B Sound added recorded music in 1959 and later became especially known for records, cassettes and CDs. Its combination of low prices and wide selection made it a major force in Western Canada's music-retail market.

• Home theater and videoHome entertainment

  The chain broadened from traditional stereo products into televisions, home-theater equipment and video formats such as DVDs, allowing it to compete across the developing home-entertainment market.

• Car audioAutomotive electronics

  Car audio was part of A&B Sound's related electronics offering, extending the business beyond household entertainment into in-vehicle audio products.

• 2008Progressive store shutdown and business exitStrategy

  A&B Sound's restructuring had not restored the chain, and losses and competitive pressure continued.

  What changed. Management closed remaining branches in a series of decisions during 2008 and removed the Wells Fargo-branded A&B credit card.

  Aftermath. The final store closed on November 7, 2008, and A&B Sound announced that it had gone out of business.

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• 2005Seek bankruptcy protectionOther

  A&B Sound faced growing competition in music, video and consumer electronics and reported debt of C$57 million.

  What changed. The company filed for protection under Canadian bankruptcy regulations.

  Aftermath. A proposed sale to Sun Capital Partners was not approved by creditors, and Seanix Technology subsequently acquired the business.

  Reported debt. C$57 million (Early 2005)

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• 2005Ownership transfer to Seanix TechnologyM&A

  The company needed a buyer after its proposed transaction with Sun Capital Partners failed to obtain creditor approval.

  What changed. Seanix Technology acquired A&B Sound and announced plans to concentrate on British Columbia and Alberta while closing or relocating loss-making stores.

  Aftermath. The restructuring produced layoffs, relocations and extensive store closures but did not prevent the chain's eventual collapse.

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• 2011Remaining A&B Sound inventory is auctioned

  Residual merchandise resurfaced for liquidation through Able Auctions in Vancouver.

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• 2008A&B Sound closes its historic Victoria store

  The Victoria branch, opened in 1977, was announced for closure as the chain's retrenchment accelerated.

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• 2008A&B Sound announces closure of Nanaimo and Calgary North stores

  The company decided to close the Nanaimo store and then abruptly shut the Calgary North location, ending its remaining Calgary presence.

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• 2008A&B Sound closes its remaining stores and exits business

  A series of closures from August through November eliminated the chain's remaining locations, and the company announced on November 7 that it had gone out of business.

  Bankruptcy
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• 2005A&B Sound files for bankruptcy protection

  The retailer sought protection under Canadian bankruptcy regulations while carrying reported debt of C$57 million.

  Bankruptcy
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• 2005Seanix Technology acquires A&B Sound

  After a proposed transaction with Sun Capital Partners was rejected by creditors, Seanix Technology acquired the retailer and planned a substantial store restructuring.

  M&A
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1. A&B Sound