NEWS: Tower Records Closes After 56 Years In Business
October 9th, 2006 | 
News | Source: CMWired.com (255)
The demise of Tower Records, a decade in the making, resulted from bad luck and bad decisions. Sacramento’s most famous company was done in by competition from the Internet and “big-box” discounters, twin forces that devoured several of Tower’s peers. But Tower also hurt itself by clinging to a tried-and-true business plan — opening new stores — long after brick-and-mortar music shops everywhere were faltering.
Even as his company was starting to get carved up by the Internet six years ago, Tower founder Russ Solomon dismissed the Web as something that would “never take the place of stores.” And when Tower was able to slash its debt burden through a 2004 bankruptcy, it squandered that fresh start by failing to move quickly into digitally downloaded music. […read more]
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