Austin's Waterloo Records to relocate, take on new ownership

AUSTIN (KXAN) — For decades, Waterloo Records & Video has been a cornerstone of Austin's music scene. Now, the business is entering a new chapter — with a new location and owners.

Caren Kelleher, founder and president of Gold Rush Vinyl, confirmed Thursday she and business partner Trey Watson (CEO of Armadillo Records) will be taking over Waterloo Records. The vinyl shop has operated in Austin for more than 40 years, including 35 years at its current location along West Sixth Street and North Lamar Boulevard.

Following a 2019 property purchase by Endeavor Real Estate Group, the business faced closure or relocation. Now, Waterloo Records will relocate to 1105 N. Lamar Blvd. in the springtime, according to a Thursday release.

Kelleher said her appreciation for Waterloo Records dated back 20 years, from when she first visited the store in 2005. In an Instagram announcement, she deemed Waterloo "a beacon for music discovery, a champion of artists, and one of the most iconic record stores in the world."

"Some of my most formative memories in childhood were going to record stores with my dad, and certainly going to Waterloo in 2005," she told KXAN. "The magic of a record store is just something really special. And every time I go to Waterloo, and I am there in store and I see a father and daughter walk in, for example, I think, 'wow, this could be the moment for that child that maybe sparks an interest in creativity and music in a way that it did for me.'"

Kelleher said the opportunity to co-own Waterloo Records is a "lifetime honor," adding she moved to Austin because of its rich music history and scene.

"To have a chance to both honor the history of Waterloo and its own influences — back to the Armadillo World Headquarters and other stores that came before it — and then also to think about how the Austin music scene itself is evolving, and how we involve the musicians that are reshaping what this community looks like? I feel really lucky," she said. "I'm in a unique position with both Gold Rush Vinyl and Waterloo to see that happening and to get to both honor and grow the legacy of Waterloo."

Waterloo Records' upcoming location will feature more space for in-store events and music performances and expanded parking for customers. A grand opening, along with a community celebration, is set to be held on a yet-to-be-announced date, the release added.

Kelleher said she will maintain ownership and continue to serve as CEO of Gold Rush Vinyl, adding her hope is both businesses will help champion local musicians and aid fans in better connecting with the music and artistry they love.

It also reflects a watershed moment within the music sector, as physical media like vinyl records have seen a resurgence in popularity and sales. With digital royalties being so thin, she said this shift in purchasing behavior helps create more opportunities for artists to make money off their work while connecting with fans in a more intimate way.

"I think it speaks to what's going on in society — you hear people talk about this epidemic of loneliness that's happening, that as digitally connected as we are in the world, people still crave tangible things," Kelleher said. "They crave human interaction, and I think the store environment that Waterloo is facilitates that kind of connection. For you to be able to come in and to get a recommendation on new music that you might not otherwise have found in your algorithmic playlist is really, really important."

Intertwined within that community are the employees who help curate that environment and music-sharing experience. As this transition takes place, she confirmed Waterloo Records' staff team will be coming along for the ride.

Being an entrepreneur, Kelleher said it's critical to both create and preserve jobs within Austin's economy, as well as vital to honor the people whose work and craftsmanship have helped make the store what it is. And that honor extends to top leadership; while Waterloo is pivoting to new ownership, Kunz will stay on as chair emeritus of Waterloo Records, the release said.

My decades-long hope, dream and endeavor, has been for Waterloo Records & Video to live on forever, continuing to promote Austin’s vibrant music culture and community. Now with this transition, all of my boxes are checked: a new larger home, just five blocks away; Caren and Trey buy in as my new, talented, local music industry partners; all of my team are retained and they will gain the opportunity for store ownership; all of the Waterloo Records hallmarks and traditions continue on, including innovation; and now as a minority partner and not sole proprietor, I get to work less, and play more. So thank you Austin!

Current owner John Kunz said in the announcement