LAT: Firms Said to Stop Supplying Tower Records: Has ceased paying bills

[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

[fidgeting wildly]

1. Saw that one coming.

I worked for Tower for four years. Just got a new job about six weeks ago because I didn't think the company could hold on for another year. Looks like I was just in time.

It's sad. Tower stores used to be so cool, but they have done a poor job lately of handling changes in technology and consumer habits. Of course, the record companies share alot of the blame here too. They are just vile.

The record industry as a whole right now is a perfect example of the effects of the Bush economy. CDs and DVDs are the FIRST thing that I cut when times got tougher financially, and I was getting a discount. I can't afford those things anymore. Many of us can't afford them when gas is 3.15/gal. and our electric bills are over $200.

[DeepModem Mom]

3. Thanks for an inside view, fw! nt

[closeupready]

2. This is sad for the employees there.

But I never liked Tower. Very snooty clerks, unlike Virgin.

[LostinVA]

4. I worked for Virgin

Very good benefits for retire... decent place to work.

[eppur_se_muova]

5. Bummer. I really liked Tower at one time. Found lots of hard-to-find items

there.

[brentspeak]

6. CD stores are disappearing all over the place

Two years ago, there were five CD World's in NJ; now there's only one, and it's barely frequented. Sam Goody has just about gone under, as has The Wall music stores.

No question that online downloading has killed the CD.

[NashVegas]

8. Corporatism Killed the CD - Not the Net

Independent stores are flourishing. There's a great article in Southwest Airlines' July in-flight magazine.

The Tower near me (Nashville) has been an embarrassment since I first moved here, in 1994. The clerks knew nothing about music, though they all looked real hip with their nose rings.

This Tower was the extreme anti of the Towers I'd shopped in in Boston & Cambridge.

[noshenanigans]

7. I'm sorry their cds were too expensive

I did find lots of gems in their DVDs, though. I was able to find some of the most random things there (The short lived Brady Bunch Variety Hour? Hell yes!)

I'm fortunate I live near a great cd store (Amoeba Music). It will be interesting to see what happens to the space if the stores close.