Tower Records faces last waltz

Tower Records faces last waltz

Tower Records, one of the top U.S. music retailers with nearly 90 company-owned stores, may be on the ropes. Sources at the National Association of Recording Merchandisers convention in Kissimmee, Fla., said Thursday that the Sacramento, Calif.-based chain, which has been majority-owned by a consortium of its creditors since its filing for chapter 11 bankruptcy protection in 2004, is on hold with its major product suppliers. The sources also said that a potential deal to sell the troubled firm to a group of unnamed venture capital firms has fallen through; the company had employed the Los Angeles investment banking firm Houlihan Lokey Howard & Zukin to handle a sale. These developments come shortly after the arrival in late July of new Tower interim CEO Joe D'Amico, who replaced Allen Rodriguez after the expiration of his contract. Kevin Cassidy, who heads Tower's retail operations, referred a query to a spokesman in the company's California office; calls were not returned.
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