Not long ago we reported that Tower Records was filing Chapter 11 bankruptcy and considering the sale of the business. That sale just occurred this weekend. A federal bankruptcy judge on Friday approved the sale of Tower Records to Great American Group, which bought it at auction for $134.3 million and immediately began its liquidation. GAG plans to close all Tower locations and an attorney for the company has said the sale of all merchandise as well as buildings and properties would generate $150 million in revenue.
Tower Records had 89 stores in 20 states. Tower owes creditors about $200 million and filed for Chapter 11 in August. Tower said it had been hurt by a decline in music sales industry wide as well as competition from online download services and big-box stores such as Wal-Mart.
All Tower Records locations should be holding Going Out of Business sales this week.
Tower did carry a pretty deep catalog of bluegrass music compared to other record stores, including Wal-Mart and Target. But for us bluegrass fans there is always County Sales, Amazon, and of course iTunes.