Tower Files for Bankruptcy Protection Again

by Judith Rosen, PW Daily -- Publishers Weekly, 8/22/2006

In a case of déjà vu, Tower Records in West Sacramento, Calif., filed for Chapter 11 Bankruptcy Protection on Sunday in U.S. District Court in Delaware. The beleaguered music and video chain, which launched an online bookstore as recently as last March, went into bankruptcy in 2004 for just over a month. This time around, Tower is hoping for a buyer; it’s been on the block since February.

According to the filing, Tower’s assets and debts exceed $100 million. Both Ingram and Baker & Taylor were among the company’s top 40 unsecured creditors, although no publishers appear on the list. Ingram Entertainment is owed $760,000, while its Book Company is down $160,900. Baker & Taylor Book, which had been supplying fulfillment for www.towerrecords.com/books, is owed $437,400; Baker & Taylor Video is owed $198,000.

This article originally appeared in the August 22, 2006 issue of PW Daily. For more information about PW Daily, including a sample and subscription information, click here »

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