Kaspien
| Company type | Public |
|---|---|
| Industry | Ecommerce software and services |
| Predecessor | Trans World Entertainment Corporation |
| Founded | 1972 in Albany, New York, United States |
| Founder | Robert J. Higgins |
| Fate | Ceased all operations by May 1, 2024 |
| Headquarters | United States |
Area served | United States, Canada, United Kingdom, Spain, France, Italy, Germany, the Netherlands, Sweden, India |
Key people | Brock Kowalchuk (interim CEO beginning March 11, 2022) |
| Products | Ecommerce software and services on Amazon platforms, Walmart Marketplace, eBay, Google Shopping, Target |
Kaspien Holdings, Inc.—previously known as Trans World Entertainment—was a U.S.-based company specializing in ecommerce software and services. It conducted business on Amazon platforms spanning the United States, Canada, United Kingdom, Spain, France, Italy, Germany, the Netherlands, Sweden, and India. Additionally, it operated through Walmart Marketplace, eBay, Google Shopping, and Target. Brock Kowalchuk, a former Goldman Sachs professional, served as interim CEO beginning March 11, 2022.
Trans World Entertainment Corporation
Established in 1972 by Robert J. Higgins in Albany, New York, Trans World opened its inaugural store called Record Town in 1973 and went public in 1986. The company grew by acquiring smaller or financially troubled retail chains such as Strawberries, Coconuts, Camelot Music, and Wherehouse Entertainment.
In 2000, Trans World agreed to purchase assets from WaxWorks. Two years later, in 2002, it resolved a $3 million penalty involving 41 states related to CD price-fixing practices alongside Musicland and Tower Records; customers were overcharged by nearly $500 million between 1995 and 2000.
The acquisition of Musicland Group in 2006 brought several brands under its umbrella including Musicland itself, Discount Records, Sam Goody, Suncoast Motion Picture Company, Media Play, and On Cue retail outlets.
Despite operating at a net loss from 2006 through 2010, the company returned to profitability in fiscal year 2011 with a net income of $2.2 million after closing stores and enhancing profit margins.
Acquisition of etailz, Inc.
In October 2016, Trans World purchased etailz, Inc., an online third-party retailer, for $76 million. Originally founded in 2008 by Josh Neblett, Sarah Wollnick (now Sarah Neblett), and Tom Simpson under the name GreenCupboards with a focus on environmentally friendly products, the company rebranded to etailz in 2013 following the acquisition of Ecomom.
After reporting a $14 million loss in Q3 2018, etailz reduced its workforce by 20% in January 2019. Founder and CEO Josh Neblett exited the company in March 2019; Kunal Chopra was appointed CEO later that September.
By January 2020, Trans World divested its FYE division for $10 million to Sunrise Records, thereby exiting the brick-and-mortar retail sector and retaining etailz as its sole subsidiary. In March 2020, the company restructured its board and executive team by adding new members—including etailz co-founder Tom Simpson—to reinforce its commitment to ecommerce.
Rebranding as Kaspien Holdings and Sale
On September 3, 2020, Trans World Entertainment underwent a corporate rebranding to become Kaspien Holdings while selling the "Trans World Entertainment" brand name to Sunrise Records. Concurrently, its remaining subsidiary etailz rebranded as Kaspien and consolidated operations to prioritize growth within ecommerce.
Company Closure
In December 2023, Kaspien announced plans to cease all operations permanently by May 1, 2024.
Chains Previously Owned Prior to Acquisition by Sunrise Records
- Coconuts Movies & Music: Located in Evansville, Indiana; formerly operated across the United States
- Sam Goody: Stores situated in St. Clairsville, Ohio and Medford, Oregon; previously nationwide presence
- Spec's Music: Based in San Juan, Puerto Rico
- Suncoast Motion Picture Company: Multiple locations throughout the U.S.; formerly nationwide
- SecondSpin.com: E-commerce platform; ownership transferred to Sunrise Records in 2020
- Manifest Discs and Tapes: Operating out of Charlotte, North Carolina
- FYE (retailer): Mall-based and standalone stores with a national footprint
No Longer Operating
- Camelot Music
- CD World: Locations in New Jersey and Missouri
- Disc Jockey: Mall chain serving the Southern United States
- Incredible Universe: Collaborative venture with Tandy Corporation; ceased operations in 1996
- Leopold's: California-based retailer
- Media Play: Nationwide chain that closed in 2006
- Music World: Retail stores across New England states
- On Cue: Formerly nationwide; transitioned into Sam Goody brand
- Planet Music: Located in Virginia Beach, Virginia
- Peaches Records and Tapes: Operated nationwide
- Record & Tape Traders: Baltimore metropolitan area; final store closed in 2019
- Record Factory: Based in Brisbane, California
- Record Land: National mall-oriented retail chain
- Record Town: Mall-based stores operating nationwide
- Record World: Mall chain serving Mid-Atlantic and New England regions
- Saturday Matinee: Reduced to a single outlet in Rockaway, New Jersey; previously widespread across several states
- Spec's Music Inc.: Florida-based retailer
- Spin Street: Tennessee locations; closed in 2017
- Square Circle: Mall-based chain with national reach
- Strawberries: Retail presence in Texas, Maryland, New England, and Mid-Atlantic areas
- Streetside Records: Missouri and Midwest locations; ceased operations by 2013
- Tape World: Nationwide mall-focused retail chain
- Vibrations: Located in South Florida
- The Wall: Served Mid-Atlantic states; acquired by Camelot Music during late 1990s
- Wall To Wall Sound & Video / Listening Booth: Mid-Atlantic region stores later rebranded as The Wall outlets
- Wherehouse Entertainment: Operated across multiple U.S. states; filed for bankruptcy protection in 2003; Trans World acquired 111 stores and liquidated approximately one-third; online services continued until website shutdown in 2018