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| From | Michael McCartney <michaelmccartney@yahoo.com> |
| Subject | Major Labels Stop Shipping To Tower Records |
| Date | Fri, 4 Aug 2006 15:41:15 -0700 (PDT) |
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This is from today's issue of FMQB:
http://thetimemachineradioshow.blogspot.com/ Report: Major Labels Stop Shipping To Tower Records August 4, 2006
As digital music sales rise and traditional record stores' sales suffer, it appears that Tower Records has become one of the hardest hit retailers. The Los Angeles Times is reporting that Universal Music, Warner Music and EMI have stopped shipping albums to Tower stores around the country over unpaid bills. Sources also said that Sony BMG has suspended its CD shipments as well.
The news comes to light in the same week that Tower named Joseph D'Amico its new CEO. The Times describes D'Amico as a "crisis management and bankruptcy specialist." Additionally, the paper reports that Tower told the labels it would not be paying outstanding invoices. Tower Records has long been up for sale and did confirm that it is working towards the company's sale.
One anonymous music executive told the Times, "There are some music companies that have been trying very hard to keep Tower afloat. They owe a lot of money."
Experts are unsure if Tower has run out of funds or is using the situation to leverage the record labels for a new deal. Regardless, if the labels stop sending new CDs for too long, Tower may be forced to close its 89 stores around the country.
Aloha,
Michael McCartney
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