When Sacramento, Calif.-based music retailer Tower Records entered bankruptcy proceedings on Aug. 20, the chain's management MTS Inc. was holding out hope that it would be bought by a fellow music operator like Trans World Entertainment. But unable to reach a deal, MTS decided to put the 48-year-old record retailer out to pasture.
Great American Group, won the liquidation rights with a $134.3 million bid, while Retail Consulting Services paid $1.3 million for Tower's leases.
Tower's properties should be sold within the next three months, says Spence Mehl, senior vice president with Retail Consulting. The chain's 89 stores are in 20 states and range from 8,000 square feet to 35,000 square feet.