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iPods kill the CD star... this is almost as bad as when the Bottom Line closed...
Tower Records to Sell Off Inventory
Liquidation specialist Great American Group, which bought the bankrupt music
retailer for $134.3million, plans to close all 89 stores.
By Alana Semuels LA Times Staff Writer
October 7, 2006
The new owner of Tower Records will begin liquidating the music retailer's 89
stores beginning today, just hours after a 29-hour-long bidding war.
"We're going to have discounts for consumers to enjoy as they've never been
seen before in the history of Tower Records," said Andy Gumaer, president of
Great American Group, a Los Angeles-based firm that won the auction and plans
to liquidate the company.
Great American, which specializes in liquidation, paid $134.3 million for
Tower - $500,000 more than the bid by runner up Trans World Entertainment,
which had hoped to keep some stores open. The bidding started Thursday morning
and lasted through the night. The offer was approved Friday by a judge in
Wilmington, Del.
Tower store managers who were contacted Friday had not been informed of the
liquidation sale. "Really?" said one staff member answering the phone at
Tower's flagship store on the Sunset Strip. "I had no idea."
Calls to Tower's corporate offices were not returned.
Great American Group is deploying representatives to Tower's 89 stores to
facilitate the liquidation, which is expected to last about six weeks, said
Gumaer, who used to shop at Tower. "It's sad to see a dynasty like Tower be
liquidated," he said. "It's emotional for all of us."
The chain has been struggling for years. It filed for Chapter 11
reorganization in 2004, recovered, and then filed again in August 2006. At
least three major music companies stopped shipping CDs to the chain in August,
saying the retailer had not paid its bills. Tower owes creditors about $210
million.
Founded in Sacramento in 1960 by Russ Solomon, Tower isn't the first beloved
music store to close: Others such as Camelot Music, Musicland and Strawberries
have closed as shoppers migrated to the Internet or to discount stores. Retail
music sales fell 17% from 2000 to 2005, according to the Recording Industry
Assn. of America.
But Tower's demise is not a death knell for traditional ways of buying music:
More than half of album purchases are from retail outlets, said Geoff
Mayfield, an analyst at Billboard. "That would be an obituary that is too
early to write."
alana.semuels@latimes.com
Tower Records to Sell Off Inventory
Liquidation specialist Great American Group, which bought the bankrupt music
retailer for $134.3million, plans to close all 89 stores.
By Alana Semuels LA Times Staff Writer
October 7, 2006
The new owner of Tower Records will begin liquidating the music retailer's 89
stores beginning today, just hours after a 29-hour-long bidding war.
"We're going to have discounts for consumers to enjoy as they've never been
seen before in the history of Tower Records," said Andy Gumaer, president of
Great American Group, a Los Angeles-based firm that won the auction and plans
to liquidate the company.
Great American, which specializes in liquidation, paid $134.3 million for
Tower - $500,000 more than the bid by runner up Trans World Entertainment,
which had hoped to keep some stores open. The bidding started Thursday morning
and lasted through the night. The offer was approved Friday by a judge in
Wilmington, Del.
Tower store managers who were contacted Friday had not been informed of the
liquidation sale. "Really?" said one staff member answering the phone at
Tower's flagship store on the Sunset Strip. "I had no idea."
Calls to Tower's corporate offices were not returned.
Great American Group is deploying representatives to Tower's 89 stores to
facilitate the liquidation, which is expected to last about six weeks, said
Gumaer, who used to shop at Tower. "It's sad to see a dynasty like Tower be
liquidated," he said. "It's emotional for all of us."
The chain has been struggling for years. It filed for Chapter 11
reorganization in 2004, recovered, and then filed again in August 2006. At
least three major music companies stopped shipping CDs to the chain in August,
saying the retailer had not paid its bills. Tower owes creditors about $210
million.
Founded in Sacramento in 1960 by Russ Solomon, Tower isn't the first beloved
music store to close: Others such as Camelot Music, Musicland and Strawberries
have closed as shoppers migrated to the Internet or to discount stores. Retail
music sales fell 17% from 2000 to 2005, according to the Recording Industry
Assn. of America.
But Tower's demise is not a death knell for traditional ways of buying music:
More than half of album purchases are from retail outlets, said Geoff
Mayfield, an analyst at Billboard. "That would be an obituary that is too
early to write."
alana.semuels@latimes.com
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