LAT: Firms Said to Stop Supplying Tower Records: Has ceased paying bills [View All]

[DeepModem Mom]

Firms Said to Stop Supplying Tower Records
At least three major music companies suspend deliveries to the struggling retailer, which has ceased paying its bills, sources say.
By Charles Duhigg and Geoff Boucher, Times Staff Writers
August 4, 2006

At least three major music companies cut off CD shipments to Tower Records on Thursday after record executives said that the iconic music retailer had stopped paying its bills.

Universal Music Group, Warner Music Group Corp. and EMI Group sources confirmed privately that each of the companies had stopped sending albums to the Sacramento-based chain, which has struggled with declining sales as digital technologies have changed the way consumers buy music.

Sony BMG Music Entertainment also suspended shipments, according to industry sources....

The move comes just days after Tower Records named a new chief executive: crisis management and bankruptcy specialist Joseph D'Amico. Tower executives informed record companies this week that they would not pay outstanding invoices, according to sources familiar with the conversations....

Industry insiders and analysts said it was unclear whether Tower Records had run out of money or was attempting to pressure the record companies to extend better terms....

http://www.latimes.com/business/la-fi-tower4aug04,0,736949.story?coll=la-home-business