Report: Tower Bid Above $90 Million15 Sep, 2006 By: Erik Gruenwedel
The leading bid from Great American Group for the inventory of bankrupt Tower Records and Video is reportedly between $90 million to $95 million.
The Woodland Hills, Calif.-based asset-management company emerged as the leading bidder, according to Tower.
Additional bids for Tower's inventory and/or brand name for the scheduled Oct. 5 auction in Wilmington, Del., would have to exceed that amount. Parties interested in participating in the auction have until Sept. 26 to submit their interest.
“We expect additional bids,” Michael Bloom, a lawyer representing the major record and video companies, told the Sacramento Bee. “It's the beginning of a process.”
With 89 retail locations, West Sacramento, Calif.-based Tower filed for bankruptcy for the second time Aug. 20, listing debts and assets in excess of $100 million, respectively.