Tweeter Files For Bankruptcy Protection
By Alan Wolf -- TWICE, 11/5/2008
Canton, Mass. — Tweeter has filed for Chapter 11 protection in the United States Bankruptcy Court in Delaware.
According to petitions filed today under the names Tweeter Opco, Tweeter Newco, Tweeter Tivoli and Tweeter Intellectual Property, the retailer faces “a severe liquidity crisis brought on by slow sales caused by declines in discretionary consumer spending.”
The chain, which was acquired last year by Schultze Asset Management after a previous bankruptcy filing, estimated its liabilities at between $50 million and $100 million.
Sony is the largest unsecured creditor, with claims of $1.7 million, followed by Samsung at $865,555 and Pioneer at $554,814, according to the filing.
Tweeter’s other largest claimants include Panamax ($315,066), Alpine ($308,387), Omnimount ($285,614), Panasonic ($276,750), Service Net ($275,674), Mitsubishi ($193,411) and Martin Logan ($166,025).
Tweeter acknowledged in the filing that it has begun store-closing sales through a joint venture with liquidators SB Capital Group, Tiger Capital Group and Hudson Capital Partners, but said it will continue to operate the business as a debtor in possession.
The chain currently manages 94 stores in 17 states under the Tweeter, Sound Advice, HiFi Buys and Showcase Home Entertainment brands.
Clickhereto read TWICE's complete coverage of Circuit City and Tweeter.
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As a former group leader I lead my staff to be lazy and to over promise and under deliver to to the customers. I would go home early on Saturdays and not work on Sundays. I was over paid and I underwork. I wish it was still open so I could get paid a lot of money for doing nothing.
you know who I am - 2009-9-10 21:46:00 EDT -
I would try going to a different tweeter store with your gift cards before giving up.....just because your store in your area closed, does not mean the are all done..they are closing as their merchanidse runs out....check for another store and RUN there asap and try to spend your card...maybe call first....dont give up! Get what you can out of these bastards.
Joe P - 2008-28-11 09:15:00 EST -
My husband and I went to Tweeter today, after checking the website. The site clearly states "Gift Cards Accepted", while it also clearly advertises "Store Closing"...
I took two gift cards he had given me for several different occasions, for a total of $450. While checking out, the young clerk could not get the computer to recognize a gift card. After repeated attempts and help from other employees, he finally called their "number" and was told that yes, the cards registered that amount, even though the computer would not pull them up. The manager then told him to tell us we were out of luck because the computer did not recognize the cards, and that I could call the "service number", but today was their last day.
When we stated to the manager that this was completely unfair, to deny our gift cards, our complete full receipts for payment, and not let us have the merchandise, he got very loud and slapped out the bankruptcy claim form.
What the computer's failure to recognize gift cards, after the web site clearly states that gift cards are still welcome, has to do with their bankruptcy, I do not know. We were not demanding money from a bankrupt company; we were attempting to purchase an item with our paid-for gift cards. It was crystal clear to this manager that these cards were valid, yet he became angry and ultimately, screamed at us while pointing his arm toward the door for us to GET OUT before he called the police.
So this is how Tweeter treated it's customers....all customers in the store heard how we were treated, and we are now out of $450, even though this should NOT have been included or even remotely related to the bankruptcy. The cards were paid for, they were same as cash, and the merchandise was there.
This manager should never, ever be hired to manage retail again. No wonder this company went under.
Pathetic.
Betsy B. - 2008-26-11 20:46:00 EST -
Joe P from KOP
A few days prior to Bankruptcy, your Tweeter salesperson was told by corporate to personally call any customers with down payments and inform them they would lose their deposit unless they acted quick in getting a refund...
so, your salesguy screwed you as well as Tweeter...
i'd ask him to pay you back personally....
he'll deny this taking place, but dont believe him...
honest Tweeter salesman - 2008-25-11 17:44:00 EST -
I feel sorry for all the tweeter employees getting screwed. However, now as a Tweeter "customer" I am getting screwed as well. I never worked with tweeter before, but had a great sales person work with me to prepare an install of a TV with surround sound in my home. I put down the required deposit via check on 10/18/2008, and now I have come to find out I am losing my deposit money to the bankruptcy. How is it that I can lose my deposit of 2500.00, but gift cards can still be used? I dont have one piece of merchandise to show for this. I essentially gift wrapped 2500.00 right to Tweeters creditors, I am am furious to the point that I am getting sick over it. Anyone have any ideas how to get my money back? Had I paid via credit card, I would have been reimbursed. This is discrimmination based on form of payment? Help!
Joe P - 2008-21-11 16:28:00 EST
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