Tower Records Files For Chapter 11 Bankruptcy
US retailer Tower Records has filed for Chapter 11 bankruptcy protection. The bankruptcy filings for Tower and its privately held parent MTS Inc comes after loss-making Tower was unable to find a suitable buyer. Tower has stated it's been unable to cope with competition from digital downloading and file copying. MTS listed more than $100m of assets and $100m of debts. The company closed its UK stores last year, but still has international outlets in the US, Asia, Latin America and Israel.
Tower opened its first store in Sacramento in 1960 and sold record albums for just $1.98. Over forty years later stiff competition from retailers such as Wal-Mart, Virgin Megastores and Best Buy, coupled with high lease costs, drove it into heavy debt.
I will not post the rest of their unfounded bullshit excuses (downloading music, etc). The real reasons are, as stated, competition - the fact that their prices were to high, coupled with the fact that they invested heavily in an online foray, which failed largely due to their high prices (and poor affiliate terms on top of it!). Tower has simply failed to change with the times and compete with the newcomers, which all face those "other issues", whatever effects they may have on business.
Source: siN's Metal News
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