Tower execs get bankruptcy bonuses
EmptyWILMINGTON, Del. -- Two top executives who remain at the defunct Tower Records will collect undisclosed bonuses under an order signed by a bankruptcy judge this week.
Approval comes as liquidators wrap up going-out-of-business sales at the former music West Sacramento, Calif.-based retailer, which went bankrupt twice in three years.
U.S. Bankruptcy Judge Brendan Shannon, who handed Tower Records over to the liquidators, on Tuesday approved bankruptcy bonuses for Rebecca L. Roedel, chief financial officer of the failed company, and Nicolas Thakar, corporate secretary.
Bankruptcy court records show Roedel collected nearly $426,000 from Tower Records as it spiraled toward Chapter 11. That was slightly less than the $446,000 Tower Records paid its founder and chairman, Russell Solomon, in the 12 months before the company filed for its second bankruptcy, on Aug. 20.
Solomon attempted to salvage some of Tower Records when the company was put on the bankruptcy auction block in October. His employment arrangement was terminated during the bankruptcy.
Thakar was paid nearly $180,000 in the year before Tower Records' 2006 bankruptcy, which followed time in Chapter 11 during 2004.