Monday, October 16, 2006
Tower Records Out Of Business
AP reported a few days ago that...
On Oct. 6, a federal bankruptcy judge in Wilmington, Del., approved the sale of Tower to Los Angeles-based liquidator Great American Group for $134.3 million.
While no firm date has been set for the stores to close, "Going Out of Business" signs went up this week at Tower's 89 stores in 20 states and the chain's 3,000 employees have been told they will be laid off.
The company owes creditors about $200 million and filed for Chapter 11 reorganization in August. In its filing, Tower said it has been hurt by an industrywide decline in music sales, downloading of online music and competition from big-box stores such as Wal-Mart.
Quite cheap izznit, if you think of what Google paid for Youtube...
The future seems pretty hard for the people working in the CD-selling industry. Tower records is the first big one to fall, who's next? Virgin Megastores? In the days of ipods and such, old fashioned media consumption is about to change for good. Why bother buying stuff offline, if you can get the same stuff cheaper online, or even for free
But then again, I may not miss Tower Records all that much, 'cos I'm not into buiyng cd's anyway. I'm more like a Beat Street and TurntableLab kinda guy, But wait, whattaheck is happening over here www.beatstreet.com. Should we start bidding or whut????