Trans World Buying Camelot In U.S. Retail Mega-Merger

Trans World Entertainment Corp. is acquiring Camelot Music Holdings Inc. in a deal that will create the largest mall-based music chain in the U.S. The combined entities will have capital exceeding $1 billion and more than 1,000 stores in 44 states. Musicland, with 1,323 stores, has more sites, but only 696 are dedicated to music; the rest are video or a combination.

The transaction is expected to close by the end of January. Each share in the privately held Camelot will be replaced with 1.9 newly issued Trans World shares, resulting in approximately 20.7 million new shares.

North Canton, Ohio-based Camelot emerged from Chapter 11 bankruptcy this year (Bulletin, Jan. 28), at which time its debt-holders took equity in the company. The largest shareholder is Van Kampen Prime Rate Income Trust. Camelot this summer filed to go public (Bulletin, July 30), but SEC delays and the falling stock market caused the IPO, slated for September, to be pulled.

The corporate structure of Albany, N.Y.-based Trans World remains unchanged under chairman/CEO/president Robert J. Higgins. CFO John Sullivan says the company will "evaluate" Camelot upper management and that certain executives may be asked to join the combined entity, which will continue to be called Trans World Entertainment Corp. Camelot chairman/CEO James E. Bonk would not comment on the merger; president/COO Jack K. Rogers could not be reached. Two Camelot directors will join Trans World's board upon completion of the deal. According to Sullivan, Camelot's store management will remain intact, as will its Ohio distribution facility, which is included in the acquisition. Trans World's Albany distribution facility will also continue to operate.

Since January, Camelot has acquired the Wall and Spec's chains, bringing its store count to 492. Trans World operates 520 music and video stores under names that include Record Town, Coconuts, Planet Music, and Strawberries Music.

Trans World's stock closed yesterday down 2.42% to $20.12.

-Carolyn Horwitz, N.Y.


Japan's CD Shipments Up, But Foreign Acts Slipping

Despite a weak market, production of prerecorded audio software by the Recording Industry Assn. of Japan's (RIAJ) 28 member companies in the first three quarters of 1998 rose 2% to 351.2 million units, for a wholesale value of ¥428.6 billion ($3.16 billion), up 3%.

Local repertoire showed the greatest growth, with shipments of CD albums by domestic artists rising 10% in volume terms to 146.9 million units for a value of ¥245.9 billion ($1.8 billion), also up 10%. That increase was largely due to huge shipments of greatest-hits albums by leading acts B'z and Glay. In contrast, shipments of albums by foreign acts fell 8% in both volume and value terms to 63.4 million units and ¥92.2 billion ($679.6 million), more accurately reflecting the market's general malaise.

There is growing awareness in the Japanese industry of the need for accurate sales-based data instead of production-based statistics, especially given the huge level of returns rumored to be piling up amid Japan's deepening recession.

-Steve McClure, Tokyo


Judge Won't Block MP3 Player Sales

T he RIAA has been denied its application seeking a preliminary injunction to halt sales of the Rio, a portable MP3 player developed by San Jose, Calif.-based Diamond Multimedia Systems, Inc. In the ruling, U.S. Central District Court California Judge Audrey Collins declared that the Rio does not violate the 1992 Audio Home Recording Act as had been claimed by the RIAA. Diamond says the device will be available at stores such as Electron-ics Boutique sometime in November.

-Doug Reece, L.A.



New Post For Former EMI Exec D'Agostino

Look for Sue D'Agostino to join the New York office of Rogers & Cowan on Monday as associate VP, reporting to Paul Freundlich, who is being promoted from senior VP to executive VP. Together, they will be charged with expanding the venerable P.R. firm's activities in "the corporate music sector," according to a spokesperson. D'Agostino was VP of corporate communications at EMI-Capitol Records Group North America until that operation was shuttered last year (Bulletin, May 28, 1997).

-Ken Schlager, N.Y.


Galante Staying Put At RCA In Nashville

Joe Galante, chairman of RCA Label Group in Nashville, has signed a new five-year contract with parent BMG. The move quashes persistent rumors that he was in line to head another major Nashville label. Galante, who reports to BMG Entertainment president/CEO Strauss Zelnick, has been with RCA and BMG for 28 years.

-Chet Flippo, Nashville



EMI/Virgin Oz Exec Michael Manos Exits

Michael Manos, GM of EMI Records Australia and marketing manager for EMI/Virgin, has left the company. No reason was given for his exit. Manos began with Virgin 15 years ago as promotions officer. Tony Harlow, who took over this year as managing director, takes responsibility for marketing and A&R for the time being.

-Christie Eliezer, Melbourne



Fats Among Medalists

Fats Domino, folk singer Ramblin' Jack Elliott, and opera singer Roberta Peters are among the dozen 1998 winners of the National Medal of Arts, announced yesterday by President Clinton. The medals will be presented Nov. 5 at the White House.


Queen Latifah Jazzes Up New Movie, Soundtrack

Queen Latifah makes her debut as a jazz singer in the upcoming film "Living Out Loud" and on its soundtrack, due Nov. 10 from RCA Victor/Jersey Records. Latifah sings three songs on the album: Billy Strayhorn's jazz standard "Lush Life," in an arrangement by Take 6 member Mervyn Warren; a cover of Little Anthony & the Imperials' "Goin' Out Of My Head"; and Irving Gordon's "Be Anything (But Be Mine)." The album also includes George Fenton's original jazz score, Sly & the Family Stone's "Hot Fun In The Summertime," Mel Torme's "Born To Be Blue," Etta James' "At Last," Brownstone's "If You Love Me," and the new song "Give Me Something Real," sung by New Jersey artist Clark Anderson, who wrote it with Warren.

"Living Out Loud," based on stories by Anton Chekov, hits theaters in New York and L.A. Oct. 30 from New Line Cinema. In addition to Latifah, it stars Holly Hunter and Danny DeVito.


13 Gn'R Videos Compiled

Classic videos by Guns N' Roses have been compiled on one 70-minute home video title, "Welcome To The Videos," due today from Geffen Home Video. The 13 clips by the band-winner in 1992 of MTV's Video Vanguard Award-cover material from 1987-94, including "Welcome To The Jungle," "November Rain," "Sweet Child O' Mine," "Paradise City," "Estranged," "Don't Cry," "Live And Let Die," and "Since I Don't Have You." Suggested list is $16.98.


B'Buster Deal Done

Viacom Inc. yesterday completed the sale of its 378 million Blockbuster Music stores to Wherehouse Entertainment Inc. for $115 million (Bulletin, Aug. 11). Proceeds will be used to repay debt.


Aspiring Trade Group To Launch Next Week

A new L.A.-based organization, the National Assn. of Record Industry Professionals (NARIP), kicks off Monday with a reception at the Beverly Hills Hotel. The group, an outgrowth of the 8-year-old Los Angeles Music Network, seeks to be a "trade association" for individuals in the record industry, says founder/president Tess Taylor. NARIP, which has not yet applied for non-profit status, will offer a job bank, a newsletter, and discounts to its planned seminars and conferences.


Preston Re-Elected BMI President/CEO

Frances Preston has been re-elected to another two-year term as president/CEO of BMI. In addition, the BMI board has re-elected Philip A. "Phil" Jones of Hibernia Communications and WMTV Madison, Wisc., as chairman of the board for another two years. Preston, associated with the performance right group for the past 40 years, has held her current position since 1986.

-Irv Lichtman, N.Y.


MTV VP Kurt Steffak Exits For Label Post

Kurt Steffak has exited as MTV VP of music to head the New York office of BMG-distributed Time Bomb Recordings, which is based in Laguna Beach, Calif. He assumes his new duties Nov. 9. Steffak will join former BMI director of writer/publisher relations Greg Boggs, who recently joined Time Bomb in New York as an A&R rep.

Time Bomb has also named Lynn McDonnell, formerly an alternative promotion staffer at Interscope, as promotion executive, effective Nov. 2. All three staffers report to Time Bomb founder/president Jim Guerinot.

-Carla Hay, N.Y.