Solomon May Buy Back Tower

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(Sacramento, CA)
Tuesday, August 22, 2006

Tower’s bondholders own most of the company now but the Solomon family still has a 15% share and Russ Solomon may make a bid for the company which just filed for Chapter 11 bankruptcy protection again, the second time in about 2 1/2 years.

But music industry analyst Barry Sosnick with says a more likely scenario is that another big retail chain will buy the company which doesn’t bode well for Tower’s local presence. 

"No, I think the operations will be closed down. I mean the only hope really for Tower to remain in Sacramento is if the Solomon’s step in."

Sosnick predicts Trans World – an Albany, New York based music and video chain – will buy Tower. Trans World has a reputation for buying smaller chains at rock-bottom prices after they file for bankruptcy.