Major Tower Bidder Exits Auction5 Oct, 2006 By: Erik Gruenwedel
Radius Equity Partners, the Chicago investment firm that last week said it would continue Tower Records & Video as a going concern, has pulled out of the ongoing auction for the West Sacramento, Calif.-based bankrupt music chain.
The auction began Oct. 5 at Tower's law firm in Wilmington, Del.
Tower, with 89 stores, filed for bankruptcy for the second time Aug. 20, listing debts and assets in excess of $100 million each.
The move would appear to still leave 15 bidders, including Trans World Entertainment Corp., which earlier this year acquired bankrupt Musicland.
“We couldn't pull everything together [financially] in the five-week period,” said Stuart Jamieson, managing director of Radius. “Unfortunately, we worked until midnight last night and couldn't put it together.”
Jamieson, who reiterated that Radius would have kept Tower operating, declined further comment.
“It's been a bad day,” he said.