When I blogged about Tower Records revamped online music store several weeks ago, I wondered aloud if Tower's new online strategy was wise. I was unsure if selling mid quality digital files to what Tower likes to think of as caviar customers, those collectors and audiophiles Tower claims are their army of loyalists, was a wise idea. I wondered to myself at the same time how Tower's bankruptcy recovery was coming. The execs I spoke with at the time seemed smug, full of hubris and ripe for a fall. (years of dot bomb disco taught me to smell the signs)
Wonder no more. When Tower couldn't pay up to the record labels three years ago, the labels stepped in to bail Tower out and help them get back on track. According to the Sacremento Bee, "last week, when Tower decided it wouldn't pay its debts to the record companies, the industry struck back. Industry sources said the four major music conglomerates halted product shipments to Tower."
We'll see soon enough if this is the end for Tower Records. The end of shipments means that Tower has only weeks of stock left on the shelves, and the cracks in the walls should start appearing very soon thereafter.
[via Sacremento Bee]
1. I've never had the opportunity to shop at one of the large stand-alone Tower Records - the ones I've visited have always been in a mall. Even a few years ago I thought they were kind of lame as far as a record store goes. Limited selection with very high prices. I'm not surprised that they along with Sam Goody and the other chains are on the skids.
I will miss the independent record stores whos life span, based on several articles I've read, also seem limited. I guess you have to be an old fart to enjoy thumbing through the music to find that elusive disc.
Posted at 4:11PM on Aug 7th 2006 by mike