'Austin's music town square': Waterloo Records owner reflects on enduring legacy

AUSTIN (KXAN) -- In the nearly 43 years since Waterloo Records & Video first opened its doors on April 1, 1982, the landscapes of Austin as a city and the music industry as a whole have changed substantially. Even amid such growth and change, Austin's "music town square" will continue on its legacy -- now under new leadership and a planned relocation.

Waterloo Records confirmed Thursday Caren Kelleher, founder and president of Gold Rush Vinyl, along with Armadillo Records' CEO Trey Watson will take over as co-owners. This spring, the business will move from its current site at 600 N. Lamar Blvd. five blocks north to 1105 N. Lamar Blvd.

Now 73 years old, Waterloo's owner John Kunz said it's a wave of emotions as he transitions away from the day-to-day maintenance of the shop to a chair emeritus role. But change, he said, is inevitable; in fact, it's always existed within the aisles at the shop.

"In terms of bridging the old and new, that happens every day in the bins of this store. There's a 91, 92-year-old Willie Nelson in the same bin with a 19-year-old artist that's got maybe more followers than Willie has," Kunz said.

Since 2019, Kunz said a question mark had hovered over the future of Waterloo, following Endeavor Real Estate Group's purchase of the 600 N. Lamar property. The two options remaining were to either move or close up shop.

At his age, Kunz said the idea of a five-year or 10-year lease wasn't ideal. That's where Kelleher and Watson came into the mix.

For the past decade, Watson has worked in the content, film and media space. He found a passion in legacy brands and telling the stories behind these storied institutions, leading him to acquiring Armadillo Records.

Meeting Kunz a little over a year ago, he said the two eventually began having conversations with Kelleher on the future of the business and how to continue its service into the future.

"It's going to be a part of a bigger universe of content and media that I think that we are trying to build in Austin, and that helps tell those stories -- from Armadillo Records to Armadillo World Headquarters to Waterloo Records," Watson said.

At the heart of Waterloo's longevity, Kunz said, is its staff -- some of them working at the shop for over three decades. They are the fabric of the community space curating the experiences found within Waterloo's four walls, and they will transition over to the new location under Kelleher and Watson.

As Kunz pivots to this next chapter of his own life, he said he plans on traveling more, working on some gardening and spending more time cooking -- a tall order sometimes, he said, given the wealth of fantastic restaurants in Austin compared to what he joked he can whip up. And, unsurprisingly, there'll be plenty more music to listen to, films to watch and books to read as he soaks up all that he can consume.

While reflecting on his time leading Waterloo, Kunz spoke of a watershed moment in the early 2000s, when Austin's city leaders considered millions of dollars in public subsidies for a Borders Books & Music shop on the corner of Sixth Street and North Lamar Boulevard, across the road from both Waterloo Records and BookPeople.

Kunz said he joined forces with Steve Bercu, then-CEO of BookPeople, to launch an email campaign and raise public awareness about the proposal. With small businesses, they pointed to a higher share of profits staying local compared to national chains.

Flash forward more than 20 years, both that proposal and Borders are things of the past -- while Waterloo Records and BookPeople continue to forge ahead. With this deal, both Kunz and Watson said Austinites will continue to find community, camaraderie and new music discoveries within a living emblem of "old Austin."

"Austin's music town square gather space, celebrating the culture and community of music and film and just welcoming everyone -- that had to live on, because it's such a vital part of what made Austin the kind of city we all wanted," he said. "What was it that really created the magic, and how do I make sure the magic never diminishes? In fact, the magic even becomes more magical, and I think we're going to be doing that with everything we've got planned."