Tower records, struggling for around 8 years, and declaring bankruptcy for the second time in two years, has been purchased by Great American Group for $134 million. It ends the 46 year history of the company. A judge has already approved the deal.
"I am deeply saddened to report to you that after a very significant 29 hour effort, Great American has outbid (Trans World) at the auction," Tower Chief Executive Joseph D'Amico said in a note to employees. "My heart goes out to each of you who have poured your hearts and souls into this great company."
The company has fallen a long way as at its highest point, it had over 200 locations around the world.
Tower records was 85 percent-owned by its bondholders, with the rest being owned by the family of Russ Solomon, Tower Records founder.
Retail chain, Trans World Entertainment Corp., based in Albany, N.Y, tried to convince the judge that their bid, even though lower, should have been accepted as they were going to keep the company running, which in their view would have been better for the creditors.
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