Chilling news for Tower

The lead bidder in the court-supervised bankruptcy sale is a Woodland Hills-based liquidating firm called Great American Group. That could signal the closing of Tower Records, as opposed to selling the Sacramento-based chain. Great American is mostly an auctioneer and liquidator, not a retailer. But a story in the Sacramento Bee notes that Great American "has participated in deals that keep companies open for business." And other potential purchasers could outbid Great American at a bankruptcy auction set for Oct. 5. Apparently, Tower was required to pick a lead bidder to meet the terms of an $85 million loan to keep operating. Among those still believed to be interested in buying the company are founder Russ Solomon and Trans World Entertainment Corp. Here's the release.

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Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
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