Axehole

Great American Group, a leading retail liquidation firm, announced today that it will be liquidating Tower Records and all of the company’s assets. The sale, which also includes various leases and properties, was given final approval today by a Federal bankruptcy judge.Liquidated will be all of the merchandise and equipment at Tower Records’ 89 stores across the United States. Included will be hundreds of thousands of music CDs, music and film DVDs, and various audio equipment.

Tower Records, which has 89 stores in 20 states and owes creditors about $200 million, filed for Chapter 11 reorganization in August. The industry-wide decline in music sales, downloading of online music and competition from big-box stores such as Wal-Mart was cited by the company as the reasons for its financial problems.

The filing came two years after a reorganization that resulted in bondholders forgiving millions of dollars in debt but taking an 85 percent stake in the company, leaving founder Russ Solomon and his family with 15 percent.