It’s Sad To See The Fall of A Tower
It’s a sad time for fans of Tower Records’ legendary Sunset Strip store. Tower Records recently filed for bankruptcy for the second time in three years. This move has fueled speculation that the firm might have to liquidate its stock and close the chain, including its legendary Sunset Strip store. In its heyday in the 1970s and early ’80s, the Sunset Tower attracted throngs of music fans.
However, Tower officials have denied plans to close any of its 89 stores — at least for now. The main reason for the bankruptcy bid is the fall in its revenues. Its revenue fell to $430 million for the fiscal year ending July 31 from $476.1 million a year ago. One of the main reasons for the decline is the steady growth of Internet sales and big-box retailers, which are said to have hurt Tower’s market share. Legal digital downloads grew 200 percent in 2005 while album sales fell 7.8 percent. Montereyherald.com reports:
Given its waning popularity, industry observers say, the chain could have a tough time finding a buyer willing to keep its stores operating in an industry increasingly dominated by online music purveyors and big-box retailers.
Read more: Tower Records files for bankruptcy protection
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August 28th, 2006 at 3:23 pm
This is a sad story that Tower Records has suffered such a tragic fate. I wish that te government sets up a special fund to save this kind of companies. If a company goes bankrupt then many people lose their jobs.