BusinessBusiness RecoveryTower records seeks bankruptcy protection

Tower records seeks bankruptcy protection

Just days after the Grammy Awards, Tower Records, the company which pioneered the development of music mega-stores, has filed for Chapter 11 bankruptcy protection.

Link: For more business recovery stories

The California-based record merchant made its filing with the US Bankruptcy court in Wilmington Delaware, which is likely to result in the sale of 93 stores around the country.

It is unknown how this will effect Tower Record stores in the UK, including the flagship store in Piccadilly Circus, London.

In the US, the business has suffered from competition from discount retailers undercutting its prices.

At its peak, Tower Records ran 200 stores in 21 US states with numerous international franchises and had revenues of more than $1bn (£538m).

However earnings had tumbled for 13 consecutive quarters resulting in mounting losses and store closures.

Related Articles

Investment firm acquires Avon Steel Company Limited

Business Recovery Investment firm acquires Avon Steel Company Limited

1w Emma Smith, Managing Editor
Manchester law firm enters into administration

Business Recovery Manchester law firm enters into administration

1w Emma Smith, Managing Editor
KPMG appoints new global head of insolvency

Business Recovery KPMG appoints new global head of insolvency

4w Emma Smith, Managing Editor
EY hired by Carillion to review finances

Accounting Firms EY hired by Carillion to review finances

5m Alia Shoaib, Reporter
Using insolvency as a debt recovery tool

Business Recovery Using insolvency as a debt recovery tool

6m Emma Smith, Managing Editor
UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

Business Recovery UK government should support mid-sized businesses to create a ‘new economy’ post-Brexit, says BDO report

8m Alia Shoaib, Reporter
Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

Business Recovery Over 800 jobs saved as Endless LLP acquires Jones Bootmaker

9m Emma Smith, Managing Editor
FRP Advisory expands operation with new office, partner appointments

Accounting Firms FRP Advisory expands operation with new office, partner appointments

10m Emma Smith, Managing Editor