Just as vendors are starting to get over the collapse of the Musicland chain (see 'Trans World Bid for Musicland Approved'), another music chain is on the ropes. Tower Records has stopped paying its bills, and is on credit hold to major suppliers, according to published reports. The damage done by the Musicland bankruptcy, directly and indirectly, to several industries was profound (see 'Ventura Owed $78 Million').
Although the 89-store Tower chain was nowhere near as large as Musicland, it's still another nail in the coffin of the music store channel, which over the last ten years has been an important source of sales on graphic novels, home video, toys, and other licensed goods.
Tower had recently expanded its offerings of online books, including graphic novels and manga (see 'Tower Records Expanding Books').
Tower hired a new CEO in July to sell the company.