Business Journal: Tower Files For Chapter 11
Tower Records has filed for Chapter 11 bankruptcy protection for the second time in two and a half years.
Monday, August 21, 2006
The financially strapped retailer filed for bankruptcy protection late Sunday and reached an agreement for $85 million with its bank. The money allows Tower Records to buy CDs after many record companies earlier this month stopped orders because the company missed its payments. The West Sacramento-based company is evaluating possible buyers for the 89-store chain, which could be sold within the next 60 days. Tower Records’ founders, the Solomon family, transferred most of the company to the retailers bondholders when it exited bankruptcy in 2004. This is Ron Trujillo with the Sacramento Business Journal.