Tower Records, which has been struggling for years and filed Chapter 11 reorganization in 2004 and 2006, will close and its assets liquidated.
Nashville employees were notifed late Friday afternoon according to popular local DJ Phil G.
"It’s a sad day for the music industry. Yes, I’m upset but doing okay," Phil said in an email to friends and sister weekly GLBT newspaper Inside Out Nashville.
Phil G, who DJs at Tribe Video Bar, has been a long-time employee at the Tower Records on West End in Nashville. He has been responsible for some of the custom art banners of new music and performers that drape the front of the store.
The new owner of Tower Records will begin liquidating the music retailer’s 89 stores beginning today, just hours after a 29-hour-long bidding war. Great American Group is a Los Angeles-based firm that won the auction. It was one of 16 bidders hoping to acquire Tower. Associated Press reports that Tower sold for $134.3 million, which includes the sale of leases and properties.
"That’s it. They’re gone. End of the line. We got the news late this afternoon (Friday, Oct. 6)," Phil said. "I don’t know how soon the closings will happen. I also don’t know how soon everything will be clearance priced. You should probably think about coming by. "
At least three major music companies stopped shipping CDs to the chain in August, saying the retailer had not paid its bills. Tower owes creditors about $210 million.
Founded in Sacramento in 1960 by Russ Solomon, Tower isn’t the first beloved music store to close: Others such as Camelot Music, Musicland and Strawberries have closed.