By Mike Copeland

Tribune-Herald business editor

Holze Music Co. owner Rob Gibson said he felt like he was in “debtor’s prison” as he gradually raised the money he owed the state comptroller’s office for delinquent sales taxes.

His 10 music stores have been closed since April 9, but Gibson said Thursday that he has paid the comptroller’s office and hopes to open his flagship store at 1210 Lake Air Drive early next week.

Other stores will open in coming days.

“I profusely apologize to any of our customers whom we have inconvenienced or let down,” said Gibson, adding, “I’ve got a very dedicated group of people who want to come back to work.”

Gibson first said Thursday that he would reopen the Lake Air Drive store today. He later said the opening would come next week “because I’ve got to get all my employees sorted out.”

Gibson said he was able to raise the $170,000 he owed the state even with closed stores because customers continued to mail payments either to the stores or to an agent designated to receive them.

The state comptroller’s office last week seized the Lake Air Drive store and its contents. If Gibson had not paid off his debt, the comptroller’s office could have sold the assets.

Gibson has blamed the delinquency on a cash-flow problem. On Thursday, he said most of his stores generate enough revenue to sustain themselves. He will close two or three underperforming stores but said he hasn’t decided which ones to shutter.

Gibson said he never considered filing for bankruptcy protection. He added he is talking with two groups possibly wanting to invest in Holze Music Co., a 71-year-old retailing icon in Waco.

Ruth Wyrick, a nurse at Midway Middle School, has bought and rented instruments at Holze Music Co. for her two youngsters.

At first, she was critical of the company for failing to keep customers informed of progress, or lack thereof, in getting the stores reopened.

But she later said the company appeared to be doing everything it could under the circumstances.

She said an employee met her son at the Lake Air Drive store and let him inside just long enough to retrieve a guitar that had been held captive by the closing.

Wyrick described as “awesome” the news that Holze will reopen.

“I think they deserve another chance, though people will be a little cautious. He really pulled it out, didn’t he?” Wyrick said.

Allen Spelce, a spokesman for the comptroller’s office, confirmed that Gibson’s sales tax liability has been satisfied. He said Gibson will be allowed to operate the stores while the state and Gibson’s attorneys negotiate the reinstatement of Holze’s sales tax permit.

Gibson said he expected to get his sales tax permit reinstated Thursday, which is why he planned an opening today.

But Gibson faces other issues.

GE Commercial Distribution Finance Corp. has filed suit against the company, claiming it is in default on more than $450,000 in payments to the finance company. Part of that debt, it says, has accumulated because Holze has failed to make payments to CDF for the sale of instruments that had been put up as collateral.

The suit says the financing company fears that if the borrower’s actions continue, “the remaining collateral will be dissipated, concealed or sold to third parties, or ill-treated, damaged or otherwise destroyed.”

CDF has requested that a temporary restraining order be issued. A hearing on that request is scheduled for 1:30 p.m. today in Judge Vicki Menard’s 414th State District Court in Waco.

“There have been talks between our lawyer and their lawyer, and I believe this situation will be resolved” today, Gibson said.

Troy Tinney, Waco Independent School District fine arts director, said Holze’s reopening is “certainly good news for the company and certainly good news for us here in the area.”

Tinney said the district tries to support local businesses as much as possible and often turns to Holze for assistance.

Holze Music Co. was started in 1937 by Lewis Holze. Sons Larry and Ronnie Holze ran it for many years before selling it in 1991 to Gibson. The Holzes have not been involved in its operation since.

Gibson said he will be reopening stores gradually. He urged customers to visit www.holzemusic.com to find out when their store will open.

mcopeland@wacotrib.com

757-5736