The Graying of the Record Store

Just what the name says.
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stevef
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Postby stevef » Sun Oct 08, 2006 4:14 pm

Tower Records R.I.P.


Group Plans to Liquidate Tower Records

By Randall Chase, AP Business Writer

Friday, October 6, 2006


After a lengthy auction stretching over two days, a federal bankruptcy judge on Friday approved the sale of California-based Tower Records to Great American Group, which plans to liquidate the music retailer.

After almost 30 hours of what attorneys described as "robust" and "vigorous" bidding, Great American won with a bid of $134.3 million, beating Trans World Entertainment, which had hoped to continue operating at least some Tower stores, by a single bid increment of $500,000.

Peter Gurfein, an attorney representing Tower Records, said the company will be sold for an aggregate of $150 million, including the sale of various leases and properties.

Gurfein said Great American plans to begin the liquidation process and going out of business sales on Saturday, which eventually will result in the elimination of the jobs of some 3,000 Tower employees.

"This is not an easy decision," said bankruptcy Judge Brendan Shannon, who nevertheless noted that the Tower debtors and other parties had agreed the bidding process was conducted fairly and in good faith.

Tower Records, which has 89 stores in 20 states and owes creditors about $200 million, filed for Chapter 11 reorganization in August. In its filing, the company said it has been hurt by an industrywide decline in music sales, downloading of online music and competition from big-box stores such as Wal-Mart.

Tower's Chapter 11 filing came two years after initial reorganization that resulted in bondholders forgiving millions of dollars in debt but taking an 85 percent stake in the company, leaving founder Russ Solomon and his family with 15 percent.

Solomon founded Tower in Sacramento, Calif., in 1960, starting by selling records out of his father's drug store and eventually opening the company's landmark store on Hollywood's Sunset Boulevard in 1969. As part of the bankruptcy auction, the Sunset property will be sold for $12 million.

Michael Bloom, an attorney representing Tower's secured trade creditors, urged Shannon to consider the closeness of the bids and the effect that liquidation would have before deciding whether to approve the sale.

"We can save this company or we can liquidate it," Bloom argued. "... Sometimes, the highest bid is not the best bid. In this case, your honor, we believe the best bid is the Trans World bid."

Trans World, which has about 1,100 mostly mall-based stores nationwide, has recently acquired other music retailers such as Sam Goody and Wherehouse Music, consolidating most of its acquisitions under the FYE name, which stands for For Your Entertainment.

Tim Pohl, an attorney representing Trans World, asked the judge whether $500,000 was "a material enough difference" to liquidate a company, as opposed to keeping thousands of people employed.

But Jay Indyke, an attorney for Great American, said Trans World and its bidding partners had discussed liquidating inventory and closing about two dozen Tower stores, and that they would not say how many stores they would continue to operate.

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stevef
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Postby stevef » Sun Oct 08, 2006 4:17 pm

from Chicago Sun-Times--


Music shoppers mourn fall of Tower Records


October 8, 2006

BY MAUDLYNE IHEJIRIKA Staff Reporter


Nostalgia prevailed among saddened shoppers at Lincoln Park's Tower Records on Saturday.

The word had gone out, even before hired hands hit nearby corners with yellow and red signs blaring: "Tower Records Closing. Everything Must Go!" The store, at 2301 N. Clark, on Saturday began its going out of business sale.

"I heard it on the radio and immediately put it on our Saturday errands list," said Jennifer Roberts, 33, of Lincoln Park, who was bobbing her headphoned head at one of the bustling store's listening stations. "I love this place. You can find anything here. If it's music, they have it, unlike these newer places."

Chain being liquidated

She was echoed by others at what seemed a wake. Three other Illinois stores are closing too after a federal bankruptcy judge on Friday approved the sale of the California music retailer to Great American Group, which bought it at auction for $134.3 million and immediately began its liquidation.

Tower, which owes creditors about $200 million, filed for Chapter 11 reorganization in August, citing an industrywide decline in music sales, increased downloading of online music and intense competition from big-box stores like Wal-Mart as factors.

It operated 89 stores in 20 states, including stores at 214 S. Wabash and in Schaumburg and Bloomingdale.

"I can remember coming to Tower Records when I was 17 years old. We were living in Oak Park, and I'd hang out at their store at Harlem and Irving. I've been a customer for about 26 years," said Vince Porcello, 43, of Lake View.

"And this Lincoln Park store has been here for so long. I knew when Best Buy showed up it might put them out of business," Porcello said. "The selection here is a lot better than Best Buy and Circuit City. It's a shame. You won't be able to come here anymore and get the weird titles that you can't find in the mainstream."

Russ Solomon started Tower selling records from his dad's drugstore in 1960. The chain, known for deep inventory and lower prices, opened its landmark Hollywood store on Sunset Boulevard in 1969.

Somber employees declined comment Saturday. Tower's closing puts about 3,000 employees out of work.

"It's pretty sad, really. I'm always in this particular store and the one downtown," said Tammy Mercure, 29, of Humboldt Park, as she hopped on her scooter with a bagful of CDs. "Tower was the one place I could come to find any CD I'm in the mood for, even it was at 11 o'clock at night."

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stevef
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Postby stevef » Sun Oct 08, 2006 4:20 pm

This was posted on another site... still interesting to read and makes some great points in the process...


A Letter To Tower Records

Tower Records, the "homegrown" record/video/poster/book shop that started out by selling records from a drugstore in the 40's has filed for bankruptcy - marking a new low for the music industry. But who's to blame? Why everybody except for the industry itself.

As executives and stock holders keep bitching and pressuring congress to sue 10 year old for downloading songs.. the music industry continues its downward spiral.

They are doing and accusing everyone and everything for the downfall of music except their own greedy fat cat asses.

Target and Walmart are to blame for their low prices... kids are to blame for illegally downloading.. The economy is to blame...

Hey here's an idea - invest some of that A&R money and develop an artisit... but why do that when you can pump out a few hit songs for half the cost...?

We finally figured you guys out and we are sick of the shit that you are producing. So why not fess up - instead of hiding behind lawsuits.. you're just pissing us off even more.

Here are a few reasons the record industry is in serious termoil:

Clay Aiken - come on, are we to believe that he really had a #1 album.. or did you simply pre-ship a million + copies in hopes to inflate the markets perception? After a few weeks, when the album doesn't sell they ship the albums back.. and the turmoil begins.

It happens all the time - record companies pre ship enough copies to stores in the hopes that kids but them. If they don't then they slash the price down from 18.99 to about 14.99...

$18.98 for a CD - WTF??? Most CD's run about 54 minutes. 49 of them are shit and the one good song, makes you sick after the 3rd time.

Artists are pricks - There is simply no more relationship with the fans and artists. It's all about the benjamin's, and we're sick of it. $200 concert tickets.. you're phucking right I'm going to download your songs bitch!!!

Karma - for over 20 years we've been screwed over by the Music Industry.. now it's our turn. How does it feel? We've been surrounded by unoriginal talent - and what's your answer???

No Doubt's remake of "It's My Life" Sheryl Crow's "The First Cut?" and you're surprised we download? You really are stupid.

Downloading is our "checks and balances" system. If you suck, we download your music and you keep sucking. If you're good, you've got nothing to worry about - your fans will always support you.

Do artists think that because they are making music - they have talent? Perhaps that's the problem, artists are delusional and expect wealth..

Whatever it is, record executives can keep their heads up their asses or they can combine their one original thought and give us a reason to buy music again. And don't think that Prince opening the Grammy's is gonna cut it.


http://www.speedmonkey.net/MUSICREVIEWS ... _tower.htm

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Rspaight
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Postby Rspaight » Sun Oct 08, 2006 4:51 pm

Downloading is our "checks and balances" system. If you suck, we download your music and you keep sucking. If you're good, you've got nothing to worry about - your fans will always support you.


What a load of cow cookies. Most people will always choose free over pay if they think they can get away with it. Noble desires for the music industry not to "suck" have nothing to do with it.

Can we PLEASE call a moratorium on people rationalizing downloading with this sort of nonsense? I don't give a damn if you download (I've done it, you've done it, we've all done it), all I ask is that you be honest about it. You do it because it's free, not because you're protesting MSRPs that no one pays or concert tickets no one's forcing you to buy or poor quality albums you wouldn't buy anyway.

It's the last one that's the stupidest. "I download music because new albums suck!" If they suck, why do you download them? Is your consumerist need to endlessly acquire music so great that you don't care what it is you amass as long as your hard drive fills up?

If you really are downloading because of some sense of protest, then it would be much more impressive of you just stopped consuming RIAA product. By downloading it, you implicitly acknowledge that it has value and you desire to have it. If it was truly worth *nothing* to you, why bother to download it?

Any half-sentient shopper can get CDs these days for $10 or less, often much less. Most any song in the universe can be legally downloaded for a buck or less. So, Mr. Speedmonkey, spare me your bellyaching. If you can't afford ten bucks for a CD (as low a price as there's ever been for such a thing, adjusting for inflation) or a buck for a song, then you don't need to be spending the rent money on entertainment (or a broadband connection and PC for bittorrent, for that matter) anyway. If you don't want to spend money and would rather download for free, just be a man and say so. Don't turn it into some fake crusade for justice.

On topic, I'm actually surprised Tower survived as long as it did. I imagine the FYE/Sam Goody conglomerate will follow it into the grave shortly. (Since FYE and Sam Goody make even less sense than Tower. Tower at least had a good selection at high prices. FYE/Goody have a pathetic selection at insane prices.)

Ryan
RQOTW: "I'll make sure that our future is defined not by the letters ACLU, but by the letters USA." -- Mitt Romney

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Jeff T.
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Postby Jeff T. » Sun Oct 08, 2006 8:26 pm

Rspaight wrote:On topic, I'm actually surprised Tower survived as long as it did. I imagine the FYE/Sam Goody conglomerate will follow it into the grave shortly. (Since FYE and Sam Goody make even less sense than Tower. Tower at least had a good selection at high prices. FYE/Goody have a pathetic selection at insane prices.)


They could have saved at least 100 million had they done this 3 years ago. It was clear Tower's business model was so far out of whack with reality 5 years ago. That they could have admitted the era of the 18.99 CD was over even by 1986.

But I gotta agree, music sucks so fucking bad, and it's not just because I am (considered by marketing) old. I loved the Replacements, liked the song writing / guitar of the Smiths too. And then something happened. Two other bands I liked alot put out their master works. A UK act XTC released Oranges and Lemons, and another The Waterboys issued This is the Sea. These masterworks both have headache inducing d-i-g-i-t-a-l extra-crispy mixing and mastering.

Then albums stared to get worse sounding. But the difference is the acts that would get pushed in our faces were horrible, and the CDs of them sounded horrid. Double whammy!

But the industry did not care if I liked it or not as long as MTV played the video, and the artist had cool hair.

Tower employees never offered me any help, and I never heard music in their stores that I would want to own. I do recall them getting on that in-store mic before closing and telling customers that they'd better get to the line fast of they will not get to pay because store is almost closed. In a Fucking rude way!

I don't download songs or album legal or otherwise. I tried it once and got a connection time-out before the song was complete. But I do burn CD copies of all those thousands of albums I already bought, plus some.

I see the shit being released today on the video monitors at the gym. All these awful bands that sound like retreaded hardcore with insensitive drummers with no restraint. Horrible songwriting, and very weak musicianship.

Remember when buying a new album was an event? No really, there was a time when you opened up that album with beautiful graphics, pulled out the LP, and were blown away by the detail in the presentation, and when it came on, it was an event. Oh Quadrophenia, Wish You Were Here, Aja, Sandinista, and Remain in Light, all these unreal experiences. All by artists that fought to have it just so, and all of them given years to evolve and develop to the point of being able to deliver one of these types of masterpieces. Yes, believe it or not, there was once a time when labels would give an artist five albums to develop. That was because the owners or management believed in them, or just liked their music. It's like "hey, we love the new album, let's try a small theater/club tour and see if we can break even or perhaps score a hit." Then on sometimes the 5th or 6th album a monster of a smash!!!!!!!!! Like nothing anyone dreamed of.

So I am very happy that Tower will be wiped off the face of the earth by next year. Get the stagnant dinosaur symbol of corporate faceless over priced shit out of the way.

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Beatlesfan03
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Postby Beatlesfan03 » Sun Oct 29, 2006 9:29 pm

Oddly enough and I'm not sure if this means anything, but the CD Warehouse near my house seemed to be a little top heavy in imports when I was going through the used new arrivals. Sure enough, quite a few of the titles had Tower stickers on them. Since there isn't a Tower in Jacksonville, I can only guess some of the Tower stock is being offered and liquidated to other stores.
Craig

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Jeff T.
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Postby Jeff T. » Sun Oct 29, 2006 9:53 pm

yeah, the Tower stores were cherry picked before the sale started. But likely, more junk (not from Tower) will be moved into Tower stores during the lasy two weeks of the "hurry up last chance" close out sale.

Really sad huh, not about Tower, but about music and what happened to it.

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Postby Beatlesfan03 » Sun Oct 29, 2006 10:35 pm

I remember when Sam Goody was liquidating in Cleveland a few years ago. For awhile there, my friend and I loaded up on gag gifts because they had so much garbage in there for less than $5.00.

Needless to say the discounts were light on the stuff that was actually worth purchasing and when it did come down to the wire, the good stuff had mysteriously disappeared when they applied the discounts to the catalog stuff.

But damn, I never saw so many copies of Jimmy Page's "Outrider" for $1.00 and I don't think I ever will.
Craig

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Postby Rspaight » Mon Oct 30, 2006 8:33 am

Ah, Outrider. Sometimes I think that album was made to enhance the posthumous reputation of the Firm.

Two notes:

1) The bit about having a "weasel in my pocket, and it's gonna go right down your little hole" or whatever might be the worst blues lyric ever.

2) My sophomore year in college, my roommate and I used his Amiga to create a music video for "Wanna Make Love" consisting of various lo-res porn pictures obtained from local BBSes.

Ryan
RQOTW: "I'll make sure that our future is defined not by the letters ACLU, but by the letters USA." -- Mitt Romney

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Jeff T.
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Postby Jeff T. » Sun Dec 10, 2006 5:26 am

I didn't mind Outrider that much. I would have loved it if Page did the double album he had in mind. It would have had blues and acoustic stuff all over it.

Anyway, as far as Tower is concerned, life support has been turned off, and it's now just a matter of a few days until that ugly monster meets it's deserved fate.