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DJGold
Professional Mobile Disc Jockeys
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SteveCie
Joined: January 28th, 2006
Posts: 106
Location: Keansburg, NJ
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| Posted: Thu Oct 12, 2006 8:03 am Post subject: Tower Records Out of Business |
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Tower Records, a venerable but bankrupt chain of more than 90 U.S. music stores is going out of business after its sale Friday to a new owner.
A federal bankruptcy judge approved the sale of the Sacramento, Calif-based company at auction for $134.3 million to Great American Group, a Los Angeles liquidation firm.
Peter Gurfein, an attorney representing the 46-year-old chain, said it will be sold for a total of $150 million, including the sale of various leases and properties. Gurfein said Great America plans to begin the liquidation process and going-out-of-business sales Saturday.
John Mittelstaedt, manager of the Tower Records store at Fifth Avenue North and Roy Street, said all music will be marked down 10 percent, all books 20 percent and all magazines 30 percent. Tower also has a store at 4518 University Way N.E.
Tower, which owes creditors about $200 million, filed for Chapter 11 bankruptcy protection in August. In its filing, Tower said it has been hurt by an industry-wide decline in music sales, the trend toward downloading online music rather than buying CDs and competition from discount stores such as Wal-Mart. |
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Digital Scott
Joined: September 26th, 2004
Posts: 420
Location: Milwaukee, WI
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| Posted: Thu Oct 12, 2006 9:05 pm Post subject: |
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| I heard about this from another board about a weekago. maybe he had inside info..LOL:) |
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SteveCie
Joined: January 28th, 2006
Posts: 106
Location: Keansburg, NJ
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| Posted: Thu Oct 12, 2006 9:16 pm Post subject: |
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The main reason that Tower was acquired and closed was the drop of business in the record industry.
Illegal downloading is a big culprit here.
Our Deejay industry is being adversely affected right now by illegal downloads and IPODS. People are now opting for IPOD entertainment at parties, even wedding receptions, to save money.
Let's face it, the recording industry has to turn a profit to stay in business.
Digital downloding is killing the goose that laid the golden egg for us. |
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Digital Scott
Joined: September 26th, 2004
Posts: 420
Location: Milwaukee, WI
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| Posted: Thu Oct 12, 2006 9:20 pm Post subject: |
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| I know.I just hope this will turn the corner and it start to pick up again... |
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