Tower Records

[BruceH]

In August of '73 I drove across the country from New Jersey to San Francisco with a buddy. When in Los Angeles we stopped at the Tower on the Sunset Strip. I had never seen such a place. I remember buying Mark Murphy's first Muse LP, Bridging a Gap, which was new at the time.

Ah, the memories of that fine emporium . Picked up lots of Japanese import Blue Note titles there (including a rare sighting for the time of the Tyrone Washington). The range they had in the early to mid 1990s was pretty astonishing.

Indeed. The Tower at Columbus and Bay streets here in town used to have a great jazz section. I bought loads of stuff there right up through the early 2000's. Used to be a great place to just browse too.

[BeBop]

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[Big Al]

Just did a search for some Cal Tjader OJC's..... Latin Kick and Tjader Plays Mambo..... neither one listed......

[Jim Alfredson]

DO NOT ORDER FROM TOWER!

From CDBaby, who sells our CDs:

Due to an administration change at Tower, CD Baby's deal with Tower has been indefinitely put on hiatus.

Read the news here: http://news.google.com/news?q=tower+records

If you have links to tower.com website, you should remove them, because they are not selling any CD Baby CDs anymore.

We will take the responsibility of making sure you get paid for sales that already happened, but there will be no more sales through tower.com in the future.

They are going under, folks! Don't order from them!

[trane_fanatic]

I stopped in at the Tower on Columbus & Bay here in SF last night to pick up Sun Ra's "Space Is The Place" at the Impulse sale. Asked the young lady at the counter whether they are closing down and her reply was "No, we always have sales." Take it FWIW. Is Tower going the way of Whorehouse Music & Sam Fooley? Time will tell.

As a former Whorehouse employee, I can relate to upper management lying about they are in good shape, everything's gonna be alright and one day, boom... the ax falls on everybody.

Edited August 8, 2006 by trane_fanatic

[Tim McG]

I stopped in at the Tower on Columbus & Bay here in SF last night to pick up Sun Ra's "Space Is The Place" at the Impulse sale. Asked the young lady at the counter whether they are closing down and her reply was "No, we always have sales." Take it FWIW. Is Tower going the way of Whorehouse Music & Sam Fooley? Time will tell.

As a former Whorehouse employee, I can relate to upper management lying about they are in good shape, everything's gonna be alright and one day, boom... the ax falls on everybody.

As a former Music Plus employee....I concur.

[PHILLYQ]

It's not looking good for Tower at all. I googled 'Tower Records bankruptcy' because I vaguely remembered them filing. Tower filed for Chapter 11 reorganization in 2004 because they couldn't find a buyer, and they still can't find a buyer. The major music companies have now refused to supply Tower with additional product after Tower informed them that Tower would not be paying any outstanding invoices. Tower is also on their 3rd CEO in 4 years, the latest a turnaround specialist.

Upcoming liquidation sale is my best guess. It's very rare that a company comes out of Chapter 11, as Tower did, and survives for long afterwards.

[Chalupa]

Last week I received a special order for some Japanese cds. It took them about two weeks to fill the order. The cds cost me about 50% less they I could find anywhere else online.

Correct me if I'm wrong but I thought they don't charge your credit card until the items ship.

[Dan Gould]

It's not looking good for Tower at all. I googled 'Tower Records bankruptcy' because I vaguely remembered them filing. Tower filed for Chapter 11 reorganization in 2004 because they couldn't find a buyer, and they still can't find a buyer. The major music companies have now refused to supply Tower with additional product after Tower informed them that Tower would not be paying any outstanding invoices. Tower is also on their 3rd CEO in 4 years, the latest a turnaround specialist.

Upcoming liquidation sale is my best guess. It's very rare that a company comes out of Chapter 11, as Tower did, and survives for long afterwards.

They came out of bankrupcy extremely quickly last time, because the majors couldn't let such a major retailer die. Whether they are willing to let it die now is the question.

[jeffrey r]

I just got this interesting e-mail from Tower regarding a special order item I had ordered.

"Dear Jeffrey,

Due to some major changes currently happening at Tower.com/Tower Records, including the sale of the company, the backordered item(s) on your order# xxxxx have been cancelled as they are temporarily unavailable at this time."

Strange they would mention the sale of a company in a cancellation e-mail. Be that as it may, my local Tower is still up and running, well stocked and well staffed. I don't see any major changes happening anytime soon.

[Patrick]

I haven't yet received a similar email for my backordered (and OOP) titles.

I did just get a "buy 4 get 1 free" promotion notice that is in-store only and limited to CD/DVD stock on hand. Now through Sept 4. Vulture circling time?

[Morganized]

I haven't yet received a similar email for my backordered (and OOP) titles.

I did just get a "buy 4 get 1 free" promotion notice that is in-store only and limited to CD/DVD stock on hand. Now through Sept 4. Vulture circling time?

Yea, I just received the same email. Could it mean a Sept. closing for the brick and mortar stores?

[chris olivarez]

It doesn't sound good. Could a liquidation sale be too far away?

[Patrick]

Sadly, buy 4 get 1 free is just not too compelling when they price most Blue Note midlines at $12.99. Perhaps this vulture will swoop down before prices fall to Concordian levels, but it ain't happening yet/now. They want to move product, how 'bout one of them $7.99 spectaculars they used to have every year or so (back in the day)...

[catesta]

It's doesn't look good.

I stopped at a Tower around Huntington L.I. yesterday and the selection is definitely thinning out.

[paul secor]

Hitting the downtown Tower in NYC was a treat I looked forward to back in the day. There was always a great selection of jazz, blues, r&b, ethnic - just a lot of great music to choose from. These days, buying online is just easier - tho I'd patronize Tower if one were nearby. Hope they make it, just for the old time connection I have.

[Tim McG]

Tower Records died out in my town three years ago.

Figures.

At $18-20 bucks a pop....nobody is going there.

[ejp626]

In Chicago, there are two Tower stores (that I shop at anyway). One is a kind of dingy place downtown that I rarely go in. When I do, the only thing I look at are the new releases, since they have discounts. The normal prices are always too high. The other has a nicer layout and is a better shopping experience, esp. to browse for jazz, but is a bit far from where I lived. So I very rarely patronized Tower when I was in Chicago. On the other hand, I used to spend quite a bit of time in the Manhattan Tower on Broadway in the Village (and almost never the one near Lincoln Center). That one was quite amazing to me years and years ago. But I still spent much more of my money at the Tower Outlet store across the street. I suppose like most Americans, I'm willing to give up the browsing factor and the immediate gratification of the B & M store, and replaced it with internet shopping for better deals and looking forward to things arriving in the mail.

[Guest sailor]

I was a teen (1977) when I first stepped into a Tower Records.

At that age, I like meandering at the Billboard Hot 100 singles wall.

Selectively picking weird song titles and picture sleeves that stuck

out visually. The summer of 1978, taking my paper route proceeds,

I remember seeing the Rolling Stones “Beast of Burden” picture

sleeve, I did not get the record opting for some oldies – years later I

met an owner of a record store who did get one (from the same store)

and sold it on ebay for an ungodly amount. If I could go back in time. Sigh.

But below the wall of Hot 100 were the bin of oldie re-issues hence my unceasing

addiction to the 45 rpm. I have many good memories about some of the

knowledgeable sales clerks.

[chris olivarez]

Tower Records died out in my town three years ago.

Figures.

At $18-20 bucks a pop....nobody is going there.

When I was in San Francisco on buisness I used to like to go to the Tower which wasn't too far from the hotel that I stayed at(the St Francis Westin). Is that the Tower you were referring to?If it is that's too bad because it was pretty good.

[Claude Schlouch]

Tower Records died out in my town three years ago.

Figures.

At $18-20 bucks a pop....nobody is going there.

When I was in San Francisco on buisness I used to like to go to the Tower which wasn't too far from the hotel that I stayed at(the St Francis Westin). Is that the Tower you were referring to?If it is that's too bad because it was pretty good.

When I was in San Francisco on vacation I used to like to go to the Tower which wasn't too far from the Howard Johnson hotel where we stayed. It was the first time I saw a so big record store. Sad to hear about their situation.

[Dave James]

There used to be two Towers here in Portland. One on the westside and one on the eastside. The westside location has been gone for years. The other one is still there. It used to have a passable jazz section, even some odd lot Japanese imports, but I was out there for the first time in a while the other day and, at least as far as jazz goes, they're down to the seeds and stems. Other genres are still well represented, including classical. The only B&M in these parts that's worth even half a hoot is an independent called Music Millenium. They've been around since the '60's.

Up over and out.

[ejp626]

I'd say things do look bad for Tower Records in the US, but I happened to be in Tokyo this week, and I stopped in at the one in Shibuya. It was hopping, and well stocked. So perhaps there will be a liquidation of the US stores and a spin off of the international ones. Who knows...

Anyway, the prices were a little bit better than typical Tower Record prices, but I tried to refrain from going crazy. I'm trying to only get Japanese pressings where there is a significant savings. Perhaps the coolest thing is that a fair number of the Blue Note TOCJs in the 1500 series are being sold for 1500 Yen, which is a bit under $15. I picked up three Duke Pearsons which don't appear to be widely available. That was it, though I was tempted by a few other things, including some hard to find Archie Shepps. I may still go back.

[brownie]

From Reuters today.

TOWER RECORDS FILES FOR BANKRUPTCY AGAIN

By Chris Morris

Tower Records filed for Chapter 11 bankruptcy protection for the second time in two years Monday, weeks after word surfaced that the iconic music retailer had been cut off by major suppliers for failing to pay its bills.

MTS Inc., the corporate parent of the 89-store chain based in West Sacramento, Calif., said in court papers that it aimed to keep Tower up and running as a "going concern" while a new owner is sought.

Many in the industry had feared that, given the severity of Tower's situation, a Chapter 7 liquidation could be in the offing. The possibility still exists that the company's assets could be sold off piecemeal if a buyer can't be located.

As the biggest and one of the last free-standing, deep-catalog music retailers -- with Virgin Entertainment's 20 stores as its closest competition -- Tower occupies an important position in the world of brick-and-mortar sales. Its flagship store is a landmark on Los Angeles' Sunset Strip, but it no longer draws crowds.

The company acknowledged in its filing, in U.S. Bankruptcy Court in Delaware, that its same-store sales declined 9% during the past year. It cited the industrywide slump and "intense competition" from legal and illegal downloading, as well as from "big-box" retailers, such as Best Buy and Wal-Mart, which sell music as a loss leader.

In 2004, the company underwent a prepackaged Chapter 11 filing in which bondholders assumed control of 85% of the debt-wracked firm. The family of founder Russ Solomon continues to hold 15% of MTS.

As a result of the current filing, the company will now receive $85 million in debtor-in-possession financing from its primary lender CIT Group.

Tower said it had negotiated delivery terms with its principal suppliers to assure a flow of fresh product into its stores. Recently installed CEO Joseph D'Amico said: "The trade has always supported Tower through difficult times, and we recognize that their support is imperative to the consummation of a transaction."

Subject to court approval, Tower will attempt to finalize a sale of the chain -- which hired Los Angeles-based Houlihan Lokey Howard & Zukin as its sales agent in March -- within 60 days.

The clock is ticking: The filing noted that Tower is scheduled to make the next payment on its revolving credit facility in mid-December. The document stated: "Without a restructuring or the sale of substantial assets, it is unlikely that the debtors will have sufficient liquidity to pay the portion of the CIT facility that becomes due on December 15."

The year's fourth quarter, in which record chains traditionally do the majority of their business, also is looming. D'Amico said, "Tower Records has conducted an extensive sales process, and this step will allow buyers to complete a sale in time for the holiday season while maximizing the value for stakeholders."

Sources said that a sale of the company to a consortium of unknown equity firms fell through in the days before Tower's current fiscal crisis became public knowledge.

"We're praying they'll reorganize successfully," one veteran music executive said. "We're praying they'll come back to life. Do I feel they're going to do it? Yes. Tower's enough of a brand, they can come back."

The executive added that the dissolution of Tower could have a dire impact on the public's perception of music retailing: "Can you imagine Tower Records with boards on the windows on Sunset Boulevard? It'd be horrifying."

"Everybody's rooting for them," a longtime sales executive said. "We all need as an industry for people like Tower to be around."

The list of potential buyers for Tower is a short one. Beyond equity firms, the likeliest purchaser might be Trans World Entertainment, a largely mall-based chain that operates more than 900 stores out of Albany, N.Y.

One observer believed that Trans World, which specializes in buying troubled chains' outlets at fire-sale prices, could swoop in "at the right price. . . . Trans World tends to wait until the right time to pick up these accounts. They're very smart and very astute people."

[Eric]

I can't say that I will mourn the loss if they don't emerge or go Chapter 7. Their economics have not allowed them to be competitive for many years. Hopefully we will see independents fill the void. I travel the US quite a bit and have been pleasantly surprised how many indie record stores still exist and seem to thrive (as measured by busy stores and deep catalogs in the bins).