User:Evetslane/sandbox

Peaches Records and Tapes was a Los Angeles based national music retailer chain opened in the 1970s. The store wanted to carry practically everything that was released and in its heyday had record bins not only stuffed with titles for browsing, but had thousands of albums in the overstock area below the browsing bins.

The way the record business worked at the time was albums would be discontinued and retailers would have a limited number of days to gather up the titles that were discontinued and return them for full credit. The record companies would then slice a corner of the album and resell the album to retailers at a deep discount just to get rid of them. These were known as “cut-outs” and the corner sliced out was to verify that they were sold at the discounted price so consumers could not return the album to the store for full value. Discontinued albums could not be returned for full value anymore to the record companies.

Peaches had such a vast stock of albums that many titles were missed and not returned on time. Thus, over a few years, they had built up tons of overstock that they could not sell or return, and this tied up their cash and forced them to file for bankruptcy on June 1, 1981. With 35 to 50 stores in 1981, (sources vary) the chain filed for protection from creditors under Chapter 11 of the Federal Bankruptcy Act. They continued operations while in Chapter 11.

By 1982, Bromo Distributors out of Dallas had bought the chain and continued to operate it as Peaches for several years. At some point prior to 1985, they renamed the Peaches stores “Sound Warehouse”.