Tower Bankruptcy Taken in Stride
by Staff -- Publishers Weekly, 2/16/2004
Tower Records' bankruptcy filing last week is not expected to be a major problem for publishers, agreed several executives contacted by PW. They noted Tower's vow that it will conduct "business as usual" during the restructuring process as well as the fact that Tower's position as a bookseller has diminished over the years. The company operates a total of 93 stores, a number that includes five stand-alone bookstores. Many of its record stores also have small book departments.
Under the pre-packaged bankruptcy plan devised by Tower, the Solomon family, which founded the retailer in 1960, would give up control to a group of creditors while maintaining a 15% stake in the chain. Tower executives hope to complete the reorganization within two months. Tower filed for bankruptcy after its attempts to find a buyer, which began last spring, came up empty.
