Bye Bye Tower Records

[Isaac]

Yesterday I was at the Buena Park mall looking around Tower Records. As I was leaving the store I noticed a sign in the window that read "everything on sale", then another one which read "everything must go". I thought to myself 'Are they closing the store ? It's barely been open for 3 months!' I took another step and saw another sign which read "store closing". 'Are they going out of business ? I hope not!' Then I saw another sign which read "going out of business". DAMN !!

Tower Records to be liquidated; 3,000 are expected to lose jobs

By Randall Chase

The Associated Press


WILMINGTON, Del. - After a lengthy auction stretching over two days,
a federal bankruptcy judge on Friday approved the sale of
California-based Tower Records to Great American Group, which plans to
liquidate the music retailer.


After almost 30 hours of what attorneys described as "robust" and
"vigorous" bidding, Great American won with an offer of $134.3 million,
beating Trans World Entertainment, which had hoped to continue
operating at least some Tower stores.


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.


Gurfein said Great American plans to begin the liquidation process and
going out of business sales today, which eventually will result in the
elimination of the jobs of some 3,000 Tower employees.


"This is not an easy decision," said bankruptcy Judge Brendan Shannon,
who nevertheless noted that the Tower debtors and other parties had
agreed the bidding process was conducted fairly.


Tower Records, which has 89 stores in 20 states and owes creditors
about $200 million, filed for Chapter 11 reorganization in August. In
its filing, the company said it has been hurt by an industrywide
decline in music sales, downloading of online music and competition
from big-box stores such as Wal-Mart.


Tower's Chapter 11 filing came two years after initial reorganization
that resulted in bondholders forgiving millions of dollars in debt but
taking an 85 percent stake in the company, leaving founder Russ Solomon
and his family with 15 percent.


Solomon founded Tower in Sacramento, Calif., in 1960, starting by
selling records out of his father's drug store and eventually opening
the company's landmark store on Hollywood's Sunset Boulevard in 1969.
As part of the bankruptcy auction, the Sunset property will be sold for
$12 million.