Criminal Records owner plans November close

Eric Levin has helped make Record Store Day an annual event to support 1,000 independent record stores worldwide.

But he may have to shutter his own music store – Criminal Records – by Nov. 1 after making what he said were bad business decisions during the nation’s recession.

“We’ve been underwater ever since the economy became distressed,” founder and owner Eric Levin said Monday. “We’ve been on a rescue mission for three years. I’m done paying for it by myself.”

There are more than 700 independent record stores nationwide. Many have closed their doors saying they can’t compete with Amazon, iTunes and big box retailers such as Best Buy or Target that sell new releases at deep discounts. If Criminal closes, that will leave the metro Atlanta area with a half-dozen independent stores that sell new or used CDs or vinyl records. Levin rattled off nearly 10 independent music stores in Atlanta or Decatur that have shuttered in recent years.

"It's just unfortunate that digital music made it so people don't have to go into stores," said Sean Bourne, manager of Wax n' Facts, which started up in Little Five Points 35 years ago. The store sells new and used CDs, vinyl records and other music-related items, but Bourne said CD sales have dwindled to less than 5 or 10 percent of the store's bottom line.

"As far as we go, we're fine," Bourne said. "As far as Criminal goes ... they have a solid fan base. But in this business, you have to be agile."

Moods Music, Criminal's neighbor across the street, has found a business plan that works for them. In addition to music, they sell items such as soy wax candles, soaps, oils, DVDs and T-shirts.

"For us, so far, it's been OK. I think what kind of helps us is that we're more of a specialized kind of store," owner Darryl Harris said. "We have a niche market. I think based on that, that kind of keeps us going."

Criminal’s growth was also its downfall, Levin said. A move to a 6,000-square-foot space from a 2,500 one tripled expenses. Hosting live music two or three times a week for free became costly. The recession, legal and illegal music downloading and what Levin called a “miserable” holiday season in retail sales only dug the hole deeper. The four-day freeze after January’s ice storm cost the store $14,000, he said.

“I gave myself until the 20th anniversary and if I was still drowning by August 2011, I’d pull the plug,” Levin said. He said there's no federal or state aid for a struggling small business like his and every bank or credit union has turned him down. But "going further into debt [wasn't going to work] as the debt load is the problem that got me to this point," Levin said.

Levin, who also owns Aurora Coffee on Moreland Avenue, said it’s unclear what’s next. He’s considering a liquidation sale or combining the store with Aurora. Local musicians and artists want to sell CDs, T-shirts and art to raise money to keep the business running. Levin said his landlord, who has discounted the rent in the past, has been patient. Two tenants are jockeying for what will be open space, however, he said.

The retail business – CDs, vinyl records, comic books, magazines and graphic novels – is “above par,” but it’s just not enough, Levin said. The store typically buys CDs for $10 and sells them for $12. The average margin across the board is 30 percent. Levin said it would take between and 80 and a 100 percent margin to break even.