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Tower Records to be Liquidated
Sunday, October 8th, 2006 at 3:00 PM - by Jeff Gamet
The brick and mortar music retailer, Tower Records, was sold at auction Friday, October 6, to Great American Group. The company beat out Trans World Entertainment with a winning bid of US$134.3 million, according to ABC News.
Great American Group began its liquidation process and going out of business sales at the 89 Tower Record stores on Saturday.
Tower Records filed for Chapter 11 bankruptcy protection in August for the second time in three years. The company cited legal download services like the iTunes Store as one of the primary reasons for its financial problems.
Coming in to the auction, Tower Records representatives had hoped to be able to keep the majority of its stores open. Trans World Entertainment, the company that purchased other retail music stores like Sam Goody, was likely to keep at least some of the stores open.
Tower Records was operating independently of Tower Records Japan. Tower Records Japan recently teamed with Napster to launch a new music download service called Napster Japan.
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