A number of companies are expected to bid for Tower Records, which in August announced intentions to sell the company under proceedings of Chapter 11 of the U.S. Bankruptcy Code.
Several other companies are expected to submit bids and attend an auction of the company’s assets on Oct. 5. Tower Records, also known as MTS Inc., has selected the Great American Group as the lead bidder for the sale of inventory at all of the company's stores.
The Great American offer also represents the start of the process to sell Tower’s assets at the upcoming 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," says Joseph L D'Amico, CEO of Tower Records. Great American Group is a Los Angeles asset management company that provides financial services to retailers, distributors, manufacturers and healthcare administrators.
Under the sale process approved by the bankruptcy court on Sept. 6th, Tower may select other qualified bidders who have an interest in purchasing the ongoing business of MTS or its individual assets. Tower, No. 212 in the Internet Retailer Top 500 Guide to Retail Web Sites , opened one of the first Internet music stores on America Online in June 1995 and followed a year later with the launch of Tower.com.
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