ANOTHER CALIFORNIA CHAIN IS LIKELY TO FILE TOMORROW. I FEEL FIRST AND FOREMOST FOR THE INDY LABELS WHO HAVE PRODUCT ON THE SHELF. CHANCES ARE YOU'LL HAVE TO CHALK THAT UP. RECORD CHAINS TEND TO ORDER A BUNCH OF UNITS PRIOR TO GOING PUBLIC WHEN IT COMES TO BANKRUPTCY. KNOWING DAMN WELL THEY'LL BE FUCKING OFF YOUR MONEY BEFORE THEY GO. THE GAME GOT 2 BLACK EYES AND A SWOLEN LIP... HARDLY ANY USE FOR LOCAL DISTRIBUTION ANYMORE. LOOKS LIKE MOMS & POPS AND ONLINE SHOPS FROM HERE ON OUT. JUST A HEADS UP.
TOWER RECORDS BANKRUPT?
- Thread starter JimmydaButcher
- Start date
It's nothing new... Tower Records has been in financial disarray for the past 2-3 years.. they've been gettin extentions and about 18 months ago or so sold their Tower Japan chain in order to alleviate some of the debt. They fired a shitload of high rank executives including the founder ...
It's a matter of time before Transworld is able to take them over and create a monopoly....
It's a matter of time before Transworld is able to take them over and create a monopoly....
what's jacked up is Best Buy and Target use cds as "loss leaders" offering low priced cds... in order to draw customers in and have them leave with .. the cd... a new dvd player and whatever else... they dont trip off losin' 3 or 4 bucks off a cd because they have the chance to make much more and profit off impulse buys.
here's the most recent Tower Story....
Tower Records considers filing for bankruptcy
By Dale Kasler -- Bee Staff Writer
Published 6:40 p.m. PST Thursday, February 5, 2004
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Tower Records, the troubled retailer that's been on the auction block since last spring, is considering filing for bankruptcy in order to smooth the path toward a sale.
One source familiar with the thinking of Tower's creditors said they expect Tower to make a so-called "pre-packaged" bankruptcy filing in which most of the details of Tower's financial restructuring have already been approved by the major creditors. This source said the filing "is imminent."
A bankruptcy filing would make it easier for Tower to conclude a debt-for-equity swap that most bondholders endorsed months ago. The source said the swap would leave the bondholders in control of the company. In return, Tower's debt load, which forced the company into default last spring, would be greatly reduced, making the retailer a far more attractive acquisition prospect, this source said.
A source close to Tower confirmed that a pre-packaged filing could be filed soon under Chapter 11 of the bankruptcy laws. This source said the bankruptcy would have no effect on store operations, employees or vendors.
It wasn't clear, however, whether a buyer would be disclosed when and if the bankruptcy is filed, as is often the case in a pre-packaged bankruptcy.
West Sacramento-based Tower, a legend in the music business, has been in a financial free-fall for years because of a massive slump that has afflicted many record store chains.
For more details, see Friday's Bee.
here's the most recent Tower Story....
Tower Records considers filing for bankruptcy
By Dale Kasler -- Bee Staff Writer
Published 6:40 p.m. PST Thursday, February 5, 2004
Get weekday updates of Sacramento Bee headlines and breaking news. Sign up here.
Tower Records, the troubled retailer that's been on the auction block since last spring, is considering filing for bankruptcy in order to smooth the path toward a sale.
One source familiar with the thinking of Tower's creditors said they expect Tower to make a so-called "pre-packaged" bankruptcy filing in which most of the details of Tower's financial restructuring have already been approved by the major creditors. This source said the filing "is imminent."
A bankruptcy filing would make it easier for Tower to conclude a debt-for-equity swap that most bondholders endorsed months ago. The source said the swap would leave the bondholders in control of the company. In return, Tower's debt load, which forced the company into default last spring, would be greatly reduced, making the retailer a far more attractive acquisition prospect, this source said.
A source close to Tower confirmed that a pre-packaged filing could be filed soon under Chapter 11 of the bankruptcy laws. This source said the bankruptcy would have no effect on store operations, employees or vendors.
It wasn't clear, however, whether a buyer would be disclosed when and if the bankruptcy is filed, as is often the case in a pre-packaged bankruptcy.
West Sacramento-based Tower, a legend in the music business, has been in a financial free-fall for years because of a massive slump that has afflicted many record store chains.
For more details, see Friday's Bee.
why is it jacked up? it is good for me. I used to buy a lot of cds from tower because they carry a lot of bay shit but I just got fed up with their 16.99 and 18.99 prices. if best buy is gonna sell their cds for 9.99 so I might buy something else, so be it. If I dont have the self control to not make "impulse buys" than that is my problem
I feel for the employees, Chapter 11 is not a fun thing to go through. With creditors and vendors constantly calling and wanting their money to not knowing if you will be getting paid or laid off, it just creates a way too stressful situation.
This really was a longtime coming. So chances are they will not be able to come out of Chapter 11 and continue business, and will most likely get bought out just like Wherehouse.
This really was a longtime coming. So chances are they will not be able to come out of Chapter 11 and continue business, and will most likely get bought out just like Wherehouse.
