p2pnet.net News:- The Great American Group became the new owner of Tower Records, last Friday, when, after a 29-hour auction, it ended up with the record retail chain for a $134.3 million.

It outbid Trans World Entertainment by just $500,000 and now it owns Tower’s 89 stores, it says it’ll says it’ll start selling them off today (October 9).

“We’re going to have discounts for consumers to enjoy as they’ve never been seen before in the history of Tower Records,” promises Great American president Andy Gumae, quoted by The Los Angeles Times.

“Really?” – said one staff member answering the phone at Tower’s flagship store on the Sunset Strip, says the story.

“I had no idea.”

Two years ago, Tower filed for bankruptcy, but it recovered, “and at the start of this year a new chief executive, a bankruptcy and crisis management specialist, was brought in,” says The Guardian Unlimited.

“But on August 20 the company again filed for bankruptcy and three leading record labels stopped supplying the chain, saying that it had not paid its bills.

“Tower’s fate was decided last week at a Chapter 11 bankruptcy sale in Wilmington, Delaware. While 16 bidders entered the auction, the winner was an asset-stripping company called the Great American Group.”

The liquidation was expected to lead to the loss of 2,700 jobs in the US, says the story

When we went for a look at Tower’s online site at 9:10 am Pacific, it was still open for business.

Also See:
The Los Angeles Times – Tower Records to Sell Off Inventory, October 7, 2006
The Guardian Unlimited – Tower crumbles in the download era, October 7, 2006

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