In August, Jens
reported with a mixture of dread and hope on the financial problems at Tower Records. When the company filed for bankruptcy, it seemed like a ray of hope might be breaking out from the clouds. Tower began negotiations with potential buyers, who would not have to assume the company's weight of debt, meaning that the new owner might decide to keep some of the most successful stores open. This evening, the Associated Press is reporting (
Group plans to liquidate Tower Records, October 6) that most of the bidding parties had dropped out of negotations. This left the field to Great American Group to purchase Tower's assets with the ultimate plan of liquidating Tower Records immediately:
Peter Gurfein, an attorney representing Tower Records, said the company will be sold for an aggregate of $150 million, including the sale of various leases and properties. [...] But Jay Indyke, an attorney for Great American, said Trans World and its bidding partners had discussed liquidating inventory and closing about two dozen Tower stores, and that they would not say how many stores they would continue to operate.
I am afraid that they have finally shot Ol' Yeller.
In August, Jens reported with a mixture of dread and hope on the financial problems at Tower Records. When the company filed for bankruptcy, it seemed like a ray of hope might be breaking out from the clouds. Tower began negotiations with potential buyers, who would not have to assume the company's weight of debt, meaning that the new owner might decide to keep some of the most successful stores open. This evening, the Associated Press is reporting (Group plans to liquidate Tower Records, October 6) that most of the bidding parties had dropped out of negotations. This left the field to Great American Group to purchase Tower's assets with the ultimate plan of liquidating Tower Records immediately:
As of today, Tower Records has ceased to exist. There are no more employees of Tower. It is up to "Great American" to decide if and how to retain any staff for the ensuing sale (which will take place on the premises for at least some time). It is the end of classical music browsing as we knew it... detrimental for small labels and unknown gems far beyond what the critics of brick-and-mortar record stores have been able to foresee.
ReplyDeleteThis makes me sad. I have such great memories of Towers all over the country. And a colleague who was the classical manager at one store. I'll have to check on him . . .
ReplyDelete