Service Merchandise was once one of Middle Tennessee's most successful businesses for decades until the changing retail landscape derailed it 20 years ago. 

Originally called Shainberg & Zimmerman's Wholesale Company, Service Merchandise was founded in 1934 in Pulaski, Tennessee, by Harry Zimmerman.  It was known for selling cosmetics, toys, glassware and other household items. It began as a family owned and operated wholesale business until the early 1960s. Zimmerman's eventually moved to 305-307 Broadway in Nashville as the business expanded.

Service Merchandise transitioned from a wholesale company to catalog showrooms. Their first catalog showroom opened in Nashville in September 1960. Business was booming; the company was able to open additional locations including on Nolensville Road, at Rivergate, at Hickory Hollow and in Memphis. 

Customer satisfaction was a top priority for the company; they prided themselves on providing a variety of quality merchandise at discounted prices. All products came with a manufacturer guarantee. Additionally, Service Merchandise implemented a money-back guarantee if a product did not meet customer expectations.

In 1962, the company broke ground on its new $40 million dollar headquarters in Brentwood. About 10 years later, Harry Zimmerman's son Raymond became president of the company, and its future appeared bright. At one point, Service Merchandise was listed in the Fortune 500. It was the nation's largest catalog showroom retailer until its 2002 bankruptcy.

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Service Merchandise filed for bankruptcy on March 15, 1999. At the time, it was the largest bankruptcy in Tennessee and among the top 20 in the nation. The company operated in Chapter 11 bankruptcy for three years until they finally called it quits. 

After the bankruptcy filing, the company closed about 150 stores and laid off 30,000 employees. The bankruptcy news left both customers and employees with feelings of shock and discontentment.

"It's been sad. I grew up here. A lot of these people are like family to me," said Tammy Locke, a 19-year employee.

"We'll miss having this place to shop. The prices are really good," said Carl Hill, a longtime customer.

Although the company would be missed, some customers did express complaints.

In a 2002 article by the Tennessean's Bush Bernard, one patron, Cynthia Fisher said that she was unhappy when the company closed its catalog operation. Another couple, Brad and Charity Kimes, said they'd stopped shopping because filling out and paying for an order, and then driving to a warehouse to pick it up had become too much of a hassle.

In addition to issues with the catalog concept, there were a number of other factors that contributed to the company's decline: low holiday sales, the aftermath of 9/11 and store size reductions. Furthermore, the company did not have a strong financial foundation. According to a 2002 interview from Virginia-based retail consultant Ken Gassman, Service Merchandise "was falling into a financial abyss for which there was no return." 

As a response to customer complaints and slumping sales, the company implemented a new shopping system. The previous systems required customers to view sample products in showrooms. They would then collect their items from a conveyor belt on the way out.

This new shopping system was part of a larger companywide makeover headed by CEO Gary Whitkin. The goal was to prevent consumers from having to stand in multiple lines, and to speed up the overall checkout process. The hope was that shorter checkout times would attract consumers and boost sales.

Although innovative for the time, it was not enough to keep the company from going bankrupt. The company had accumulated approximately $1.3 billion in debt owed to various creditors and retailers. The bankruptcy eventually turned into a liquidation, which led to the downfall of a retail empire.