The Tower Falls

[Gutterflower]

It's the end of an era

TOWER FALLS

Famed Retailer Will Fade Into History After Liquidation Firm Acquires it for $134.3 Million

October 6, 2006

The chain that began in the back of a Sacramento drug store owned by Russ Solomon’s father and grew to be the leading record retailer in the world is shutting down.

Tower Records will be liquidated beginning tomorrow after Great American, the lead-bidder in a 30-hour auction, bid $134.3 million for the property.

The liquidator put together a consortium of other suitors who were bidding on different components of the retailer. Earlier in the day, it had appeared that maybe Trans World would acquire the famed retail chain, but that report was erroneous.

UMGD President Jim Urie told Billboard: “It's a sad day for the music business and I feel badly for all Tower employees. Tower was probably the greatest brand that will ever exist in music retail.”

The company owed some $200 million to its major label creditors.

In court. Michael Bloom, a partner with Philadelphia law firm Morgan, Lewis & Bockius LLP, which represents the creditors committee, questioned if the winning bid was actually the best. Trans World's partners, Hilco Merchant Resources, LLC., upped its bid by $500,000 after the auction closed, matching Great American's bid, making it more attractive to Tower’s 2700 employees and its trade creditors.

But U.S. Bankruptcy Court Judge Brendan L. Shannon ruled in favor of the Great American bid, noting it was important to vindicate the Chapter 11 auction process.

Tower Records could live on via Tower.com. Norton LLC, part of the Great American consortium, put up $3.8 million to acquire Tower.com and the now-defunct Pulse Magazine.

Out-of-business sales at Tower's stores will begin tomorrow.

[CubsFan]

As will the entire music industry as we know it. Downloading music from sites on the internet will eventually make CDs obsolete as well. Il admit since ive signed up to rapsody.com ( Legal paid Dowloading site ) i have only purchased 2 0r 3 CDs in the past year. I used to buy atleast 10 or so a year but now all i have to do is type in an artist and BAM whole Librarys are available to me without even getting off my fatt ass ( Im not fat at all ) I guess its just a sign of the times ya know.

[frethead]

Uhhh, CubsFan, you just sold me! How long have you been in this line of work, anyhow?!
It is disturbing to see the old ways fade away, since technology keeps speeding everything up and making life in our world more impersonal, not to mention the changing condition called "living" in our world, but mostly for being forced to face up to the hard truth about aging, I think. I could be wrong. Could I get me an "amen?" Just a little one, maybe?

[Gutterflower]

amen!

[frethead]

O shit, Linda!!! That was perfect!!! I can't stop laughing. How I'm goin' to remember that one! ( as if I've forgetten all the rest) LOLOL

[Fretman]

Sign of the times. I legally download what I can, and find the rest online elsewhere...it's just too easy not to.

[PoetsandMadmen]

I'm a young dude (30), but I'm still old school when it comes to music. I buy 99.9% of what I listen to, because I enjoy buying CDs. I think I just like collecting them though. I love getting an actual disc signed by my music heroes too. I have few disc signed my Savatage boys that I cherish. To be honest, I'll buy a disc from a band that I think is a worthy piece of music to buy. I guess that's my small way of supporting the bands that I love.

For example, Mr. Metal was kind enough to pass along his burned copies of his Evergrey catalog when I was first exploring that band. Well, after I got into the band, I chose to start buying their disc, because I'd rather have originals of my favorite bands. I consider myself a big Evergrey fan these days and I've almost completed buying their discography.

[frethead]

I totally hear you, Poet. I consider buying a band's or a musician's album (CD) tantamount to "putting food on the table" when it concerns something that I haven't bought, like, five or ten times over the last twenty-five years, or whatever. Additionally, the gross majority of the music that I work on, and listen to, is probably OUT OF PRINT ( Man, how I hate to see that!). Or, when Senior Ozzy is associated . . . changed to feed his wife's personality disorder. I'm a young dude, too!!! (38 in Nov.)

[Fretman]

I enjoy having the actual disc as well. Still, it's much easier for me to find it in an online store than take time out of my day to go hunt around town for what I'm looking for.

[Gutterflower]

I also like to collect the actual cds. I download off of Rhapsody and make mix cds off of that. I've got a lot of music that I've ripped from my cds on to my hard drive. But nothing beats having the actual cd, complete with liner notes, pictures and sometimes the lyrics. You can find that online, but it's not quite the same. And yes...it's supporting the artist.

What I'd really like to do is get another turntable and start burning vinyl onto my hard drive. I've got a ton of albums.

[CubsFan]

But you guys have to admit that being able to hear it online first is a huge plus. Take the new BLS record " Shot to hell " for example . After hearing it first online i decided against buying it because IMO that CD is just plain aweful and had i went out and spent 16-20 dollars on it i would have been really pissed. Anyway just my 2 cents on the matter.

[Gutterflower]

But you guys have to admit that being able to hear it online first is a huge plus. Take the new BLS record " Shot to hell " for example . After hearing it first online i decided against buying it because IMO that CD is just plain aweful and had i went out and spent 16-20 dollars on it i would have been really pissed. Anyway just my 2 cents on the matter.

Definitely. If I like what I hear, then I go out and buy the whole cd.

[Shadow]

Yes, it's really a heartache seeing such a legendary Landmark like Tower Records close down it's massive doors: at first I thought it was only in one section per City but it's "all" of TOWERS Collective from Coast to Coast closing down. I'm like "damn" another major Record shop/the other being Virgin's Mega Store: when that one closed I'm like well there's Tower Records then a year or so passes and now Towers is coming down! I'm in awe from it all really because not all people shop online/I feel as though many of us are force to buy that way and even down load that way. I like searching through the record aisle/checking out the art work & stuff and you can even listern to sample's of the music there: buy your records/Cd's, magazines, DVD's there etc.,. I much prefer that way! Thank goodness, I found Seemless new Cd & other hefty music Cd's grooves from Hard Rock/Metal Bands etc.,. I like/had on my list before this very disappointing news of taken down major Record Stores "conspiracy" taken place. I guess for now on in the near future when ordering your favorite Bands new/and vintage music materials (albums/Cd's) hopefully you just go to their respected Websites. I'm truelly disappointed....-maybe there's hope.