Music Magnates
Column
By Shannon McCarthy   
Friday, 15 September 2006
venture-smc,
In 1960, Kroum and Eva Pindoff were immigrants struggling to make ends meet. Now, nearly half a century later, Pindoff Record Sales has become one of Canada's largest subdistributors of prerecorded audio and video, supplying music and DVDs to retailers including Toys R Us and Canadian Tire.

In 1960, Kroum and Eva Pindoff were immigrants struggling to make ends meet, selling records to convenience stores and pharmacies out of the back of their station wagon. After 10 years of hard work, the couple opened their first record store at the Fairview Mall in Toronto.

Now, nearly half a century later, Music World, a subsidiary of Pindoff Record Sales, is a music industry giant, with 83 locations in all 10 provinces. Pindoff Record Sales has become one of Canada's largest subdistributors of prerecorded audio and video, supplying music and DVDs to retailers including Toys R Us and Canadian Tire. In 1995, Kroum Pindoff was inducted into the Canadian Music Hall of Fame.

But while the Pindoffs have struck it rich, they haven't forgotten their roots. Both have experienced the horrors of war firsthand. Born in 1915 in Macedonia and raised in Bulgaria, Kroum Pindoff served in World War II. His wife, Eva, survived the Allied bombing of Leipzig, Germany, where she lived with her family.

So it's only natural that the couple has poured a substantial chunk of their fortune into helping victims of war, the couple says. "[Kroum Pindoff's] philosophy is to help people who can't help themselves," says Kelly Hayward, director of operations at Music World.

"I can't say enough about him," adds Hayward, noting that Pindoff is modest about his philanthropy. "He actually is fairly quiet about what he does," she says. The Pindoffs made history by contributing the single largest donation - $5 million (Canadian) - to the Canadian Red Cross following the tsunamis in Southeast Asia in 2005.

The couple also contributed $2 million to War Child Canada, an organization that assists children affected by war, including providing health and nutrition, HIV/AIDS prevention and physical rehabilitation and education.

They have built an orphanage for children in Orahavica, Gasinci, Croatia, and donated funds to the Red Cross to help victims of landmines throughout the world. After the tsunami, Hayward says, Music World and Pindoff employees wanted to recognize their bosses for their efforts, along with finding a way to pitch in. "We came up with an idea at Music World [to] let people know what a great man we work for," she says.

Staff sold rubber wristbands, with proceeds benefiting the Red Cross' tsunami fund. "We sold 10,000 wristbands in about a month and a half," Hayward says. "I was surprised."

Family matters
The couple's giving spirit carries over into their business, Hayward says. "He refers to his employees as his family," she notes. At age 90, Pindoff still works five days a week. Eva Pindoff serves as president of Music World. "It's kind of amazing working for a company where you see the owner and founder every day," Hayward says. "This is his life."

Pindoff's fondness for his employees is reciprocated. Staff threw a surprise party for him to mark his birthday this year. Last year, the couple celebrated their 50th wedding anniversary. The family atmosphere has paid off, Hayward says, with impressive staff dedication. "We have people in our stores that have been here for over 25 years," she says. "There's a huge amount of loyalty in this company."

Music World employs about 1,000 people, Hayward says, and was named one of Canada's 50 best-managed companies. "We run very lean," she says. "We don't have a lot of extra people." Awarded annually, Canada's 50 Best is sponsored by Deloitte, CIBC Commercial Banking, National Post and Queen's School of Business.

Future focus
While Music World and Pindoff Record Sales operate independently of one another, Hayward says employees share a common goal. "We want to still be in business in 10 years," she says.

The company is poised to stay on top, and is adapting with changes in technology, according to Hayward. The advent of music downloads presented challenges, but Pindoff Record Sales and Music World continue to thrive. "I think because there's more legal downloads, illegal downloading has subsided," Hayward says. That means more consumers are willing to pay for albums, she adds. Record labels have also helped encourage album sales by dropping prices.

Music World and Pindoff Record Sales are already anticipating more changes in the audio and video industry. "The next big thing is HD and Blu-Ray on video," Hayward says. High-definition DVD and Blu-Ray, an optical disc format that uses a blue-violet rather than red laser to read and write high-definition data, will be on Music World's shelves by next winter. It will be up to consumers to decide which format they like better, Hayward says. "It will be like Beta [and VHS]," she adds. "They are going to allow the consumer to decide again."

Music World also has plans to expand by adding more locations. Right now, the company notes that 90 percent of Canadians live within 7.5 km of a Music World store. In August, a new street store will open in Quebec. "We're also looking at four other locations," Hayward says.

 
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