American
Casablanca Records was started in september 1973 by Neil Bogart,
who partnered with Cecil Holmes, Larry Harris and Buck Reingold,
after all of them left Buddah Records. Bogart initially financed
the label partly through borrowing some cash from Warner Brothers
Records, who in return set up a deal to distribute the new label's
product.
In 1974, Bogart was sure he and his crew could do better on
their own. He approached Warner Brothers and requested that
he be released from the promotion deal, and agreed to pay back
the financial loan.
Bogart moved the corporate office to 8255 Sunset Boulevard in
Los Angeles, where he built new buildings and styled the offices
after the movie set of the Humphrey Bogart film Casablanca.
Everybody got a leased Mercedes. "If you were cruising along
Sunset Boulevard in the late seventies and saw what appeared
to be an enormous Mercedes dealership, chances were good that
you'd just stumbled upon the parking lot of Casablanca Records."
In 1977, PolyGram acquired a 50 percent stake of Casablanca
for $15 million.
In 1980, PolyGram pushed Bogart out due to accounting irregularities
and poor label performance. |