Press Releases
- September 1, 2003 - First Retail TheaterXtreme location opens in Newark, DE.
- February 2004 - TheaterXtreme Delaware distribution and operations center opens.
- February 11, 2005 - TheaterXtreme, Inc. changes name to Theater Xtreme Entertainment Group, Inc.
- Early 2005 - First franchise location open in Massachusetts and Second franchise opens in Virgina.
- 2005-06 - Franchising expands into Idaho, Michigan, Pennsylvania, Utah, Ohio, Florida, Arkansas, WA., CA.
- November 17, 2005 - TheaterXtreme sells investors shares of its common stock.
- January 20, 2006 - Theater Xtreme Entertainment Group publicly listed on the OTC as (TXEG).
- February 2006 - Circuit City becomes major investor in Theater Xtreme Entertainment Group.
- March 2008 - Theater Xtreme Entertainment Group appointed new CEO Robert Oberosler.
- October 2008 - TXEG acquires Jasper Cabinet Company to expand TXEG RowOne® furniture division.
- November 2008 - Circuit City announces Chapter 11 bankruptcy protection.
- December 2008 - TXEG announces Chapter 11 bankruptcy protection.
- January 2009 - Circuit City filed Chapter 7 liquidation.
- January 2009 - TXEG files Chapter 7 liquidation.
- June 2009 - JC International purchases of Theater Xtreme intellectual properties.
- June 2010 - JC International announces intentions to continue to expand and improve Theater Xtreme.
- September 2010 - TheaterXtreme new website initial re-launch completed.
- March 20011 - Official Press Release announcing intention and plans for Re-launch sent
Company History
Theater Xtreme got its start in early 2000 by Scott Oglum, an entrepreneur in retail
business operations. Oglum owned and ran a chain of second-hand PC stores called
Second Source when he decided to set up a computerized home theater in the back room
of one of his shops. “The response was tremendous,” Oglum said. “It seemed like there
was a big opportunity out there for affordable home theater and no one was taking
advantage of it.” Scott Oglum opened the Company’s first retail store or “design center” on
September 1, 2003 in Newark, Delaware and was built to resemble an actual movie theater.
Oglum’s first Theater Xtreme store was in a modest strip mall with very low foot traffic.
A separate distribution center, warehouse and administrative office facility opened in
February 2004 also in Newark, Delaware. This multi-purpose facility was to provide
installation and service, warehousing and product distribution, and other retail support
services to a cluster of planned Company-owned design centers in contiguous and
surrounding areas.
The rapid success of his first store got Oglum excited about the home theater and overhead
projection category that he approached several friends and investors about expanding the
concept. It did not take Oglum long to get the initial funding to build a new store in a highly visible
location on a main thoroughfare in Wilmington, Delaware. Oglum was excited about the
sales of his new corporate store. Along with the initial funding and the help of his
investors, Oglum was able to take his vision into franchising. On February 11, 2005,
Theater Xtreme, Inc. changed its name to Theater Xtreme Entertainment Group, Inc.
Theater Xtreme expanded along the Mid-Atlantic seaboard with the first franchise
located in Massachusetts followed by a store near Richmond, Virginia.
On September 6, 2005, the Company entered into a franchise agreement for a design
center to be located in Boise, Idaho. Three weeks later the Auburn Hills, Michigan
franchise design center opened for business followed by Pittsburgh, Pennsylvania. The
Company entered into franchise agreements for design centers in Salt Lake City and
Provo, Utah, Columbus, Ohio, Boca Raton, Florida, and Little Rock, Arkansas.
Business was growing and the excitement of the new concept was overwhelming that
Oglum knew he needed further funding to be able to expand. Part of this expansion was
the development of home theater furnishings, electronics, and seating.
On November 17, 2005, the Company completed a private placement transaction by
selling to certain accredited and non-accredited investors shares of its common stock so
the company could continue on its aggressive growth plans. In addition, Theater Xtreme
was listed on the OTC commencing on January 20, 2006 as Theater Xtreme
Entertainment Group (TXEG).
TXEG successful growth of it corporate and franchise stores continued. Oglum knew his
company had a great future. Theater Xtreme was written up in the trade journals,
electronic magazines, local and national newspapers and national radio. Investors
continued to invest and shares of TXEG stock was selling. In February of 2006 Oglum
was approached by management of Circuit City. Oglum met with key executives of
Circuit City and gave them a tour of the new Virginia store. They loved the concept!
Scott was very excited about the company’s future with Circuit City. Soon after the visit,
Circuit City invested in TXEG in a very big way!
Theater Xtreme’s geographic reach is unique in the home-theater market, and TXEG was
well on the way to becoming a true national chain with showrooms in major population
centers. Scott Oglum, as a visionary believed that TXEG target markets could support
500 Theater Xtreme outlets, bringing in annual sales of more than $1 Billion. That may
look like a distant target now, but did not consider it unrealistic to have more than 30
company stores in operation by mid-2009.
Scott got involved developing a complete “home theater in a box” concept. His group
was developing furnishings, One View computer, and screen systems, and seating for all
TXEG stores. This development proved overwhelming for the company but once the
product was developed they started production overseas. The cost of buying, shipping,
and warehousing the products was far more than originally projected. This, plus the
expansion of stores took quite a financial toll on this young growing company.
Oglum knew that he had to get help from someone that would be able to lead the
company forward and help secure further financing for the company so he can continue
developing stores and sales programs. With the slowdown of the economy, the
commitment made to furnishings, screens, and customized electronics plus franchise
support put TXEG at a financial risk.
March 2008, Theater Xtreme Entertainment Group appointed Robert Oberosler as its
president. Scott announced, “Bob is an outstanding leader with deep experience in retail
operations. He understands what needs to be done to move the company forward, meet
growth targets and strengthen our teams. He shares our vision of building an
unparalleled brand”. “I am thrilled to welcome him to our team and to get started on the
challenging work before us.”
Oberosler’s first plan was to eliminate the franchises and have only corporate stores with
stores being planned for New Jersey and Philadelphia. His next plan was to get TXEG
out of the furniture business. In October 2008, TXEG acquired Jasper Cabinet Company
to take possession of Theater Xtreme’s RowOne® furniture division. Jasper Cabinet was
an established 100 year-old brand name in residential furniture. Oberosler realized
having Jasper Cabinet take over the furniture division, freed up TXEG to concentrate on
opening corporate stores. “Having a company like Jasper Cabinet is a great opportunity
for us to get RowOne® marketed to our stores and to other home theater outlets including
the residential furniture retail segment,” said Oberosler.
Robert Cribbs, President of Jasper Cabinet became the President of the new RowOne®
by Theater Xtreme furniture division. The new division was off to a fast start with
furniture commitments made by Circuit City and with an international electronic
distributor.
TXEG was not initially concerned by the economic downturn because of its strategic
position in the marketplace, a steady demand for its products and services, and a longrunning
investment partnership with consumer electronics giant Circuit City. To the
industry’s surprise, in November 2008, Circuit City publicly announced that it was filing
for Chapter 11 bankruptcy protection. Sadly, with Circuit City’s large investment in
TXEG, their bankruptcy forced Theater Xtreme into a similar fate, with the company
filing for its own bankruptcy protection about a month later.
Theater Xtreme had the difficult task of quickly downsizing and announcing layoffs at its
locations, including the corporate headquarters. Because of its sudden lack of investment
and working capital, the company had limited funds to provide services to its franchises.
Some of these franchises were new and because of the lack of support quickly went out
of business.
Finally in January 2009, Circuit City having very poor holiday sales, filed Chapter 7
liquidation causing Theater Xtreme to also file for Chapter 7 bankruptcy.
In June of 2009, JC International, the parent company of Jasper Cabinet, acquired the
intellectual property, trademarks, logos and operational procedures of Theater Xtreme.
“I've worked closely with Theater Xtreme's team for many years,” said Cribbs, whose
company had supplied the chain with home theater cabinetry. “During the bankruptcy
proceedings, we did substantial due diligence and found the company's failure was not
due to the business model, which was sound and very successful, but a lack of funding
mainly due to the bankruptcy of Circuit City, to help it reach its full potential. Its
investment capital tightened significantly in the final months of operation.”
Before closing, Theater Xtreme operated a chain of 10 franchised and four corporate
stores. Seven of the original franchises are still running, and the new owners are working with
them supplying them with products similar to what was offered by Theater Xtreme but at
much more affordable pricing. “We are still supporting the remaining franchises while
we develop a firm direction for the company,” says Cribbs.
Cribbs, along with key members of the original management team, is working to jump-start
TXEG again. “The program works and the company did not go out of business because
of the failure of the program,” says Cribbs. The company’s demise was due to several
factors, expanding too fast, huge capital investment in home theater furnishings, and the
most serious was Circuit City’s bankruptcy.
“This is an exciting time for TXEG,” says Cribbs. “Without the debt the company had
before bankruptcy now clears the way to build a successful store program. The key
players are in place to be able to bring back all the successful attributes of Theater
Xtreme. The investment community once again has interest in Theater Xtreme. Theater
Xtreme is now poised to start Chapter Two of their exciting history!”
In 2010, Cribbs announces that JC international will continue to expand and improve the Theater Xtreme
model. Mr. Cribbs and his group have completed the initial re-launch of the Theater Xtreme web site,
www.theaterxtreme.com, and the group is now developing a formal plan to raise capital to
open stores and to expand opportunities for existing locations.
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