Tower Records: Facing The Music

Tower Records, the music store has filed for bankruptcy for the second time in three years. In its prime time, Tower Records attracted throngs of music fans. However, these fans have now abandoned the stores like Tower Records, in favor of big-box superstores

In the 80’s and 90’s music enjoyed a different cultural status. These days music has to compete with newer pastimes such as video games, internet surfing and instant messaging. The bankruptcy filing is a consequence of corporate problems and also a shift in customers’ perception about music.

Tower Records controls 89 nationwide stories in 20 U.S. states and overseas. The bankruptcy filing has fuelled speculation that the music store might have to liquidate its stock and close the chain, including its legendary Sunset Strip store.

Spokeswoman Lisa Amore said that Tower has no plans of shutting shop. She said, "At the present time we have no plans to close any stores…..We went into Chapter 11 to make the business and the store attractive to a buyer and it is our great intention to keep the name and the brand going."

Tower's started operations in California 1950s. It soon gained a reputation as a communal place for hanging out to train and trade musical tastes. But over the past decade, large retailers as Wal-Mart Stores Inc., Best Buy Co. and Target Corp. have undercut prices and have offered variety of products, all under one roof. As a result, the music-focused stores have struggled. Many other music stores such as National Record Mart and Musicland have already fallen to similar pressures.

Such stores, including Towers would do well to diversify and sell other goods also. They need to attract people from all walks of life and cater to their many needs. Unless that happens, the ‘Tower’ seems to be falling.