Posted: Oct 6, 2006 11:51 pm
Looks like Peabody Place will soon have a mighty big hole to fill.
I can't say that the Memphis Tower store ever really won me over, but god only knows how much cash I dropped at the Nashville and New Orleans Tower stores in the late 80's and 90's -- I couldn't go to Nashville without making a side trip to the Tower on West End.
This is probably good news for small indie stores like Goner that cater to specific genres, but it's still kind of sad to see the era of big record stores finally go away...
Tower Records going out of business
By Dale Kasler, Sacramento Bee
Tower Records is going out of business.
A bankruptcy judge Friday approved the sale of Tower's inventory to a consortium led by liquidating firm Great American Group. Going out of business sales will begin Saturday, Great American president Andy Gumaer said. He said the sale will probably take eight to 10 weeks.
Great American paid about $134 million for Tower's inventory.
Great American barely outbid Trans World Entertainment Corp., an Albany, N.Y., retail chain, following a lengthy closed-door auction in Wilmington, Del., that began Thursday morning, went through the night and into Friday morning.
"I am deeply saddened to report to you that after a very significant 29 hour effort, Great American has outbid (Trans World) at the auction," Tower Chief Executive Joseph D'Amico said in a note to employees. "My heart goes out to each of you who have poured your hearts and souls into this great company."
Tower's Web site is being sold separately, although details weren't immediately available.
Trans World and lawyers for the major record companies argued that Trans World's bid should have been accepted, even though it fell slightly short, on the grounds that keeping the business alive would have been better for the creditors, who are owed a total of more than $200 million.
The sale ends a sad chapter in the history of Sacramento - and the music industry - closing out a company that began 46 years ago with a single store on Watt Avenue. At its peak it was a worldwide icon with 200-plus locations. But the company struggled mightily for the seven or eight years, the victim of fierce competition from the Internet and big-box merchants.
The company filed for bankruptcy Aug. 20 for the second time in two years. The company was 85 percent-owned by its bondholders, with the rest owned by the family of Tower founder Russ Solomon.
The news brought shock and sadness to current and former employees. 'I think the liquidtor purchase is the saddest result," said former corporate employee Mike Farrace.