Monday, October 09, 2006

Song sung blue

It's the end of the line for Tower Records. We've reported on their troubles here and here, and on the general sad state of music retailing here.

The company was sold off to a liquidator, who outbid rival music retailer Trans World Entertainment, which had planned to continue to operate the stores.
The sell-off of Tower's inventory, valuations of which run as high as $200 million, could have a wide-ranging impact on the music business at large. The company's West Sacramento, Calif., warehouse is filled with product from the vendors of its independent distribution company, Bayside Distribution, and its accessories suppliers. Companies with a high degree of exposure could be dealt a serious blow when their product is returned for full wholesale cost.
The closure of Tower further narrows the retail marketplace, especially as it relates to "genre" music and non-hits in general.

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