TOWER RECORDS RUNNING OUT OF TRACK SECOND BANKRUPTCY THREATENS STORES.Byline: JULIA M. SCOTT Staff Writer Tower Records filed for bankruptcy for the second time in three years, fueling speculation that the music store might have to liquidate its stock and close the chain, including its legendary Sunset Strip The Sunset Strip is the name given to the mile and a half stretch of Sunset Boulevard that passes through West Hollywood, California. It extends from West Hollywood's east border with Hollywood at Marmont Lane to its west border with Beverly Hills at Phyllis street. store. ``That's kind of a bummer bum·mer n. 1. Slang An adverse reaction to a hallucinogenic drug. 2. Slang One that depresses, frustrates, or disappoints: Getting stranded at the airport was a real bummer. 'cause that was the place to go to get imports and of course all the books and magazines,'' said longtime KROQ-FM (106.7) disc jockey disc jockey (DJ) Person who plays recorded music on radio or television or at a nightclub or other live venue. Disc jockey programs became the economic base of many radio stations in the U.S. after World War II. Rodney Bingenheimer Rodney Bingenheimer (pronounced IPA: /ˈbɪŋənhaɪmɚ/), (December 15, 1946 -) born in Mountain View, California, is a renowned Hollywood personality and radio disc jockey on the well-known Los Angeles . Tower officials denied plans to close any of its 89 stores. ``At the present time we have no plans to close any stores,'' spokeswoman Lisa Amore said. ``We went into Chapter 11 to make the business and the store attractive to a buyer and it is our great intention to keep the name and the brand going.'' Tower is slated to go before the bankruptcy court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. today, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. wire reports. Its revenue fell to $430 million for the fiscal year ending July 31 from $476.1 million a year ago. Amore declined to say whether Internet sales and big-box retailers had hurt Tower's market share, but court papers indicate that is true. Legal digital downloads grew 200 percent in 2005 while album sales fell 7.8 percent, according to Nielsen SoundScan data cited in court filings. Tower was listed as the ninth-largest seller of physical music in 2002, according to data compiled by NPD Group The NPD Group, Inc. is a leading global market research company[1] founded in 1967 and provides consumer and retail information to manufacturers and retailers. Using actual sales data from retailers and distributors as well as consumer-reported purchasing behavior, NPD . But in the first six months of 2006, Tower was tied for 12th. The Sunset store was an early chain, opening in 1970 after shops in San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden and Sacramento, where the company is based. Fans sought out the Sunset Tower, a fixture of the Sunset Strip, for its stock of hard-to-find imports, broad selection, and frequent in-store appearances by popular bands. In its heyday in the 1970s and early '80s, the Sunset Tower attracted throngs of music fans for record release parties, with bands jamming on the rooftop. Scores of musicians such as Adam Ant and the Go-Go's played there or signed records, said Bingenheimer, who introduced though his radio show dozens of music artists. His shoulder-rubbing with many of those same musicians was chronicled in the 2003 biographic film ``Mayor of the Sunset Strip Mayor of the Sunset Strip is a 2003 documentary on the life of Rodney Bingenheimer directed by George Hickenlooper. It features interviews with the following:
The store still stages release parties and has hosted Prince and Weezer in recent years. Given its waning popularity, industry observers say, the chain could have a tough time finding a buyer willing to keep its stores operating in an industry increasingly dominated by online music purveyors and big-box retailers. Phil Leigh, a senior analyst for Inside Digital Media Inc., said the Tower brand has value and will find a buyer, but its stores aren't likely to survive this latest bankruptcy. ``I think they'll sell off the name and liquidate the inventory,'' Leigh said. Los Angeles rock historian Harvey Kubernik was saddened, but not surprised, by that possibility. ``My life is a series of record shops closing,'' said Kubernik, author of ``This is Rebel Music.'' ``I'm unfortunately used to this. I don't sit shiva for Tower Records.'' Dow Jones Newswire contributed to this report. julia.scott(at)dailynews.com (818) 713-3735 CAPTION(S): 2 photos Photo: (1 -- color) Tower Records, the company formally known as MTS (1) See Microsoft Transaction Server. (2) (Modular TV System) The stereo channel added to the NTSC standard, which includes the SAP audio channel for special use. 1. MTS - Message Transport System. 2. Inc., asked the U.S. Bankruptcy Court to approve the rules governing an auction slated for Oct. 5. (2 -- color) Tower Records said it needs to close its bankruptcy sale by mid-October so it has time to prepare for the holiday shopping season, when it records about 32 percent of its annual sales. Gene Blevins/Special to the Daily News |
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion