Friday, August 04, 2006

Tower Records in (more) trouble

Looks like Tower is getting cut off from its supplier for now. There's a lesson to be learned here, kids. Pay your bills! More info:

Tower Records Cut Off by Music Companies, L.A. Times Reports
2006-08-04 09:23 (New York)

By Dan Hart
Aug. 4 (Bloomberg) -- Universal Music Group, Warner Music Group Corp., EMI Group Plc and Sony BMG Music Entertainment have suspended shipments of CDs to Tower Records after the company said it wouldn't pay outstanding invoices, the Los Angeles Times said, citing unidentified industry representatives. The move comes after Tower hired crisis management specialist Joseph D'Amico as chief executive amid declining sales as consumers find new ways to acquire music, the Times said. The company may be sold, the Times said, citing Tower executives. If the suspension remains in effect, Tower Records may be forced to close its 89 stores, the newspaper said. The four record companies declined to comment to the Times, as did an unidentified Tower spokesman.

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