Russell Solomon facts for kids

Quick facts for kids Russell Solomon
Born	September 22, 1925  San Francisco
Died	March 4, 2018  (aged 92) Sacramento
Occupation	Businessperson
Branch	United States Army Air Forces

Russell Malcolm "Russ" Solomon (born September 22, 1925 – died March 4, 2018) was an American businessman and art collector. He is best known for starting Tower Records, a huge music store chain that spread around the world.

Early Life and Business Start

Growing Up in Sacramento

Russell Solomon was born and grew up in Sacramento, California. This was during the time of the Great Depression, a period when many people faced economic hardship. His father owned a successful shop called Tower Cut Rate Drug Store. Russ started working there when he was only 13 years old. He learned many important business lessons from his father.

Russ wasn't very interested in school. He often arrived late and left early. In an interview, he once said he "couldn't get up in the morning." He was even "thrown out of high school," though he did take some classes later at Sacramento Junior College. Even without much formal education, he learned a lot about business from his dad. He also spent time with photographers who developed film.

First Business Idea

In 1941, when Russ was just 16, he began selling used juke box records. He sold them right out of his father's drug store. His business career was paused when World War II started later that year, as he joined the military. After the war ended, he returned to his father's store and continued his small record selling operation.

Building Tower Records

Starting MTS Inc.

By 1952, Russ decided to expand his record business. He moved from just a few racks in his father's store to a whole building across the street. He bought records on credit, but soon ran into money problems because sales weren't high enough. By 1960, he had to close his business.

Russ didn't give up. He borrowed $5,000 from his father and started a new company called MTS Inc. The name MTS came from his son, Michael. Just one month later, he opened a new store on December 15, 1961. This store, located in a Sacramento suburb, became the beginning of his international business empire.

Tower Records Goes Global

Eight years later, Russ opened a much larger store in San Francisco. This second store quickly became profitable, which encouraged him to expand even more. In 1970, he opened a store in Los Angeles. Over the next ten years, he added 26 more locations.

In April 1980, Tower Records opened its first international store in Sapporo, Japan. During the next decade, Tower Records grew worldwide. It sold not only music but also books and videos.

Challenges and Closure

In May 1998, MTS Inc. sold $110 million worth of notes to help fund more international growth. They also received a large loan of $275 million from several banks. However, one year later, the company reported its first financial loss. Even though they made $76 million in sales, the high interest payments caused the company to lose money.

Tower Records continued to expand for a while, but it never fully recovered from its financial troubles. In 2006, the company was forced to close all its stores and sell off its assets. Russ Solomon used to have a collection of neckties from visitors displayed outside his office.

After Tower Records

A New Store: R5 Records

Even after losing Tower Records, Russ Solomon, then 81 years old, kept working. He went back to his very first store location in Sacramento. He planned to open a new store called R5 Records. This new store opened just six months after Tower Records closed down.

Russ no longer owned the rights to the Tower Records name. However, he used the same color scheme for R5 Records. The new logo was designed by Mick Michelson, who had created the original Tower Records logo in the 1960s. Several long-time employees from Tower Records joined Russ in this new effort. This time, Russ used his own money to finance the store. He believed that to succeed, they just needed to do "the things that made Tower successful."

Retirement

The R5 Records store didn't quite take off as planned. After less than three years, Russ sold it to Dimple Records, a local chain in Sacramento. John Radakovits, one of Dimple's owners, turned his grand opening into a retirement party for Russell Solomon. Radakovits displayed a large oil painting of the Tower Records founder in his store. He dedicated the store to his long-time competitor and friend. Many former Tower Records employees came to the party to celebrate with Russ.

Russell Solomon passed away on March 4, 2018, at the age of 92. He died from what appeared to be a heart attack while watching an awards show.

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