Tower Announces Lead Bidder13 Sep, 2006 By: Erik Gruenwedel
MTS Inc., parent of bankrupt Tower Records & Video, Sept. 13 announced it has a lead bidder for next month's auction/sale of the venerable 89-store retailer's inventory and related assets.
West Sacramento, Calif.-based Tower filed for bankruptcy for the second time Aug. 20, listing debts and assets in excess of $100 million, respectively.
The auction is scheduled to take place Oct. 5 at the offices of Richards, Layton, & Finger, P.A. in Wilmington, Del.
Houlihan Lokey Howard & Zukin, the Los Angeles-based investment banker Tower hired in March to sell the company, said additional parties interested in participating in the auction should submit their interest by Sept. 26.
For complete details of the bidding procedures, log on to www.omnimgt.com, click on “real time data” and then on “Tower Records 2006.”
The Great American Group, based in Woodland Hills, Calif., is an asset management company that specializes in flipping excess inventory through strategic retail store-closings and wholesale and industrial liquidations.
Great American's undisclosed offer represents the start of the process to sell the Tower's assets at the auction.
“We are happy to have the Great American Group offer, and look forward to a vigorous auction with more bidders for Tower's business,” said Joseph D'Amico, interim CEO of Tower Records.