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The Motley Fool on Tower Records bankruptcy


It's nice to be agreed with, and double that when it's the witty stock watcher's at The Motley Fool. When Tower Records' publicist contacted me a few months ago to pitch Tower's latest attempt at an online music store, I had that feeling of dread that usually accompanies seeing your girlfriend wearing Ug boots. You want to let her know what a fool she looks, but you don't want to be the one to tell her.

Tower's recent bankruptcy filing isn't the first, but it will probably be the last. It's been a long time in coming, and before we hear from the myriad music journalists that will want to tell us how iTunes' David killed a brick and mortar Goliath, I think it's germaine to point out that Tower brought its death upon itself. The Fool agrees:

"Although Tower was trying new initiatives as recently as this past March, I was skeptical about ideas like an online bookstore; that concept originally took off in the '90s. I also heard that Tower launched a digital downloading service and dabbled with podcasting, but again, none of those seemed likely to differentiate Tower from its competition -- which the company called "intense" in its court filings."

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