Tower Records files for chapter 11 sites financial issues

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#1

I just posted the article Tower Records files for chapter 11 sites financial issues.

alienooze used our news submit to tell us about the financial woes of a music and entertainment chain that has been in business for over 40 years. Not even the…

Read the full article here:  [http://www.cdfreaks.com/news/7715-Tower-Records-files-for-chapter-11-sites-financial-issues.html](http://www.cdfreaks.com/news/7715-Tower-Records-files-for-chapter-11-sites-financial-issues.html)

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#2

Well Tower Records like all the other major record retailers we’reare massively over-priced anyway. I don’t think I ever bought anything from them, even though I visited their stores many a time. Try dropping your prices by 40% and you’ll have people beating their way through your doors…


#3

I tend to think their downfall, along with all the other music stores and RIAA in general, is the lack of quality music. There is nothing on the radio worth listening to anymore, IMO of course.


#4

to me tower record has one good function. Magazines. They have a huge selection of magazines including imports and pr0no. That is the only thing i could remember about them


#5

Tower can’t compete with entities that sell below wholesale in the US such as Best Buy and WalMart. They are a loss leader for them. The joke however is on the record companies. Soon, WalMart and BestBuy being the only physical retail outlets will force them to lower wholesale prices or have their products pulled from the shelves. Then we will be buying CDs for 3.99 - take that RIAA. They can’t turn to legal downloads as they are non profit already thanks to their greed. It’s a mess. I can see it now Wal*Mart buys Capitol records promises to clean up Rap music. Film at 11
[edited by Crabbyappleton on 10.02.2004 17:50]


#6

If Wal Mart puts everyone else out of business, I highly doubt we’ll be buying CD’s for 3.99. They may actually be higher in price as Wal Mart eliminates it’s competition and then raises the price when there are no other music stores. It’s all about money with Wal Mart; if they get a competitive advantage such as this you can be damn sure they will exploit it.


#7

Yes that is their “MO” but I don’t think they can run BestBuy and folks like Amazon.com, which is gaining music market share rapidly, out of business. Walmart does not carry the same things so they will not be able to pull that stunt in this case…hopefully. But if they can, they will, you are correct. Right now, LA city government is trying to ban WalMart from operating any more stores in this city of 4 million. People are finally catching on to this cancer and the strain their substandard wages and benefits put on local governments and public health systems. The dime you save on toilet paper is eaten up in 5.00 worth of city taxation you pay to cover the uninsured.


#8

The California example is exactly what has to happen to keep this behemoth in check. I’m still amazed people will drive miles out of their way and wait in lines for an item that is .94 at Wal-Mart but .99 elsewhere. My time is a hell of a lot more valuable than that. The low wages and economic strain Wal-Mart puts on a local economy is enormous; music may not be affected right now but other products are such as gasoline are affected. Margins are already tight in the petroleum industry and as Wal-Mart/Sams continue to offer this as a loss leader, the local competition base will steadily erode until the consumer has no other viable options. I wonder what will happen then…bend over, because Wal-Mart won’t be rolling any prices back, only up. Amazon/Target cater to a different clientele, so you are correct; they will be around to compete. Wal-Mart also is heavily involved in censorship which is another factor. Wal-Mart has asserted itself as the dominant supplier to the (for the most part) uneducated and conservative groups. Many of these are short-term thinkers who see only the $.05 savings they gain immediately rather than the dangerous consequences down the road. The typical Wal-Mart customer is not the target demographic for Amazon or Target for example. The relationships in both business models are quite interesting in that they are very segmented in who they target. Wal-Mart is trying to crack the stereotype by venturing into the online music world and naturally, undercutting competitors prices. Whether this succeeds or not remains to be seen. I’m also not familiar with the file characteristics of Wal-Mart’s music versus that of I-Tunes, for example. Perhaps they are different but I don’t know.
[edited by slacker6 on 11.02.2004 06:16]


#9

I totally agree. They do not want to get rid of their antiquated model that just rips off the artist AND the consumer. They WILL change as if they don’t in general they will go tits up! :g


#10

I’ve heard of a lot of companies file chapter 11 that are still around. Doesn’t mean the end, it just means they need more time to pay their bills. or whatever the heck they do with their money.