Student Discount Store Pledges To Refund Customers' Money

The Student Discount Center, closed since March 25, will send a list of its creditors to the office of state Attorney General Francis Bellotti this week. Steven Daum, the center's owner, said Thursday.

A spokesman for the attorney general's office said last week the state is mediating creditors' claims against the store.

The center, which sold stereo equipment and appliances for the last two years at 58 Boylston St., owes $12,000 to 108 customers--including five Harvard undergraduates--who made downpayments but never received their merchandise.

A Harvard student and former employee of the center, who asked not to be identified, said last week he believes the center will reimburse its customers.

But Elijah H. Millgram '84, who made a $130 downpayment on an undelivered tape deck, said last week he is "suspicious" because customers have been unable to locate Daum since the store closed. Daum's landlord. Robert Felt, also said he could not reach him.


Daum said recently he had to close because of alleged employee theft while he was on a business trip.

Two weeks ago Daum notified his customers that the center will not file bankruptcy and will reimburse its customers within 90 days. But his letter contained neither a return address nor a telephone number, Millgram said.

Daum said he omitted this information because he didn't want to be disturbed at home, adding "I didn't go into business to rip people off and I'm not going out of business ripping people off."

He added that the plans to reimburse his customers with his earnings from a bill collection service and an import-export business, of which he is the sole proprietor.

The center closed three days after Felt gave Daum 30 days to vacate the store. The center gave its remaining stock to creditors, Daum said.

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