Tower Records Files For Bankruptcy

Tower Records has filed for Chapter eleven bankruptcy protection from its creditors, its second such filing in less than three years.

The Sacramento-based company operates 89 stores in 20 states and sought bankruptcy protection Sunday to sell its assets through a court-supervised auction.

Tower is now slated to go before the bankruptcy court for the first time Tuesday morning.

Industry observers say the chain could have a tough time finding a buyer willing to keep its brick-and-mortar stores operating in an industry increasingly dominated by online music purveyors and big-box retailers.
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