Tower To Seek Chapter 11 Protection During Sale
August 21, 2006 at 5:41 AM (PT)
Embattled TOWER RECORDS, which had been put on product hold from the four major label groups (NET NEWS 8/4), has renegotiated delivery terms and is now seeking a buyer while under Chapter 11 bankruptcy protection (Section 363). The company "is looking to complete the sale before the crucial holdiay shopping season," according to REUTERS.
TOWER 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." TOWER operates 89 stores and said it got $85 million in debtor-in-possession financing that will allow it to fund its operations and purchase new products.