The music could be about to die at Tower Records.
Four major music conglomerates have cut off compact disc shipments and frozen credit lines to the 89-store chain, possibly heralding the end of the brick-and-mortar music superstore.
Tower, which emerged from bankruptcy in 2004, has been hit hard by mass-market discounters like Wal-Mart, Internet music sales and a shift by some consumers to digital downloading. The 46-year-old company, which also licenses 144 stores overseas, has been unable to attract a buyer for its format.
EMI Group, Sony BMG Music Entertainment, Warner Music Group and Universal Music Group stopped sending CDs to Tower stores within the past two weeks after Tower missed debt payments to the companies, according to label sources
Comments