Tweeter Files For Bankruptcy Protection
By Alan Wolf -- TWICE, 11/5/2008 2:07:00 PM
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.
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