I. Background of the Company

Crazy Eddie was an American retail business that sold electronic goods. The company did business in several structures. The first, and what would eventually become the most famous/infamous of the three, was a chain of retail stores that did business in New York, New Jersey, Connecticut, and Pennsylvania as well as by phone. The second was a venture that initially began as a retail store but eventually was reorganized as an Internet and phone business. The third and most recent was an online and buy-by-phone store. As of 2013, none of the three Crazy Eddie ventures are conducting business.

The original predecessor company to Crazy Eddie was ERS Electronics, which was founded by Eddie Antar, Ronnie Gindi (a first cousin) and Sam M. Antar (Eddie's father)in 1969. Eddie, Ronnie, and Sam M. owned equal 1/3 shares of ERS Electronics. The original store was located on 1117 Kings Highway in Brooklyn, New York. The company operated under the name of Sights and Sounds.

About 1970-1971, Sights and Sounds, like many other small retailers, was struggling to stay in business. In 1971, Eddie Antar purchased Ronnie Gindi's share of ERS electronics for $25,000 in cash. Eddie Antar now owned 2/3 of Sights and Sounds and his father Sam M. Antar owned 1/3 of Sights and Sounds but left the day-to-day operations to Eddie.

In 1970`s, when Crazy Eddie was opening up for business, consumer electronics retailers were subject to "fair trade" laws. These laws allowed manufacturers to require retailers to sell merchandise at the same price to avoid price competition for their products. These laws were having a negative effect on smaller retailers, such as Crazy Eddie. To survive in business, Eddie Antar resorted to circumventing fair trade by discounting merchandise to customers. The manufacturers retaliated against Eddie by refusing to sell Sights and Sounds any products.