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Tower Records

From Alfawiki
Tower Records
Company typePrivate (originally)
IndustryRetail (music and entertainment)
Founded1960; 66 years ago (1960) in Sacramento, California, United States
FounderRussell Solomon
Defunct2006 (2006)
FateBankruptcy and liquidation; brand later purchased by another organization
Headquarters
Sacramento
,
United States
Area served
Worldwide (U.S., Japan, UK, Canada, Asia, Latin America, Middle East)
Key people
Russell Solomon (founder), Danny Zeijdel (current president)
ProductsCDs, vinyl records, DVDs, mp3 players, video games, accessories, toys, books
Websitewww.towerrecords.com

Tower Records was a global retail franchise and digital music retailer originally headquartered in Sacramento, California, United States. Operating physical stores across the U.S. from 1960 until 2006, the company ceased retail operations following bankruptcy and subsequent liquidation. The brand name was later purchased by a different organization, which remained unaffected by the closure of the original outlets.

On November 13, 2020, Tower Records reemerged as an online retailer, with intentions to establish brick-and-mortar stores again in the future.

Founding, growth, and overview

The first Tower Records store was launched in 1960 by entrepreneur Russell Solomon on Broadway in Sacramento, named after his father’s pharmacy located next to the Tower Theatre. The initial standalone location was at 2514 Watt Avenue in Arden Arcade. By 1976, Solomon had diversified the business to include Tower Books, Posters, and Plants adjacent to another Sacramento store. In 1995, the company pioneered online retail with the debut of Tower.com.

Seven years after its inception, Tower Records expanded into San Francisco by occupying a former grocery site at Bay Street and Columbus Avenue. In 1979, Tower Records Japan was established under MTS Incorporated, opening its first store in Sapporo in 1980. The brand extended internationally with outlets across the United Kingdom, Canada, Asia, Latin America, and the Middle East. Eventually, the Japanese branch became autonomous from the original chain.

A landmark store opened in 1971 at Sunset Boulevard and Horn Avenue in West Hollywood; this flagship was specially constructed with extensive input from employees.

In New York City, Tower Records managed several locations near lower Broadway in Greenwich Village, including a primary store at East 4th Street and Broadway along with specialized venues such as Tower Video and Tower Records Annex. Additional NYC stores operated near Lincoln Center on the Upper West Side and a clearance outlet on the Upper East Side.

The Nashville branch on West End Avenue occupied a former Packard automobile dealership close to Vanderbilt University. Its interior was organized into sections dedicated to CDs, vinyl records, videos, games, and merchandise. Being near Music Row attracted country music performers for public appearances and shopping events.

In a 2002 settlement addressing CD price-fixing allegations involving 41 states—including retailers Musicland and Trans World Entertainment—Tower Records agreed to pay a $3 million penalty. Between 1995 and 2000, customers were estimated to have been overcharged by nearly $500 million.

In 2005, Tower introduced "scan and listen" kiosks that enabled shoppers to digitally preview music within stores—a concept later adopted by retailers such as Arizona’s Zia Records.

The Tower Insider program launched in 2006 offered customers membership cards granting discounts and email updates about promotions.

Tower Records’ inventory extended well beyond CDs and cassettes to include DVDs, mp3 players, video games, accessories, toys, as well as select bookstores located in major markets like Fremont, Brea, Mountain View (California), Austin (Texas), Boston (Massachusetts), Nashville (Tennessee), New York City, Portland (Oregon), Seattle and Bellevue (Washington).

Pulse! magazine

In 1983, the company introduced Pulse!, a publication centered on music that included album critiques, artist interviews, and advertisements. Originally distributed at no cost in retail outlets to help increase record sales, it transitioned to nationwide circulation in 1992 with a cover price of $2.95. The magazine discontinued publication in December 2002 after releasing 222 issues, coinciding with the company’s withdrawal from the U.S. marketplace.

Bankruptcy

Tower Records initially filed for Chapter 11 bankruptcy protection in 2004, largely due to substantial debt accumulated from its aggressive expansion during the 1990s, heightened competition from large discounters, and the rise of online piracy. Additional contributors to financial distress included poor management decisions and restrictive conditions imposed by the initial bankruptcy proceedings.

By February 2004, the company’s liabilities were estimated between $80 million and $100 million, while assets slightly exceeded $100 million. Tower Records filed for Chapter 11 once more on August 20, 2006, intending to enable a sale prior to the holiday shopping season. This second filing underscored persistent fiscal difficulties despite restructuring attempts.

Liquidation

On October 6, 2006, Great American Group emerged as the winning bidder for Tower Records’ assets and commenced liquidation sales the following day. This process involved closing sales across all U.S. stores, culminating in the final outlet shutting down on December 22, 2006. The Tower Records website was sold separately to Caiman Inc.

Mall-based music retailer f.y.e. negotiated to take over two iconic Tower locations in Sacramento but later withdrew due to lease complications. Nonetheless, f.y.e. secured the lease for the West End Avenue store in Nashville, which operated until its closure in 2011, and also acquired the Torrance, California site, running it until early 2016.

Rasputin Music, a retailer specializing in new and used music based in the San Francisco Bay Area, expanded into California’s Central Valley by obtaining leases for former Tower stores located in Fresno and Stockton.

Other stores

The Landmark Plaza Tower Records shops in Alexandria and Tysons Corner, Virginia, shut their doors in December 2006, followed by closures of the Washington, D.C. (Foggy Bottom) and Atlanta locations—each with decades of operation. On December 22, 2006—marking four decades since Russ Solomon opened the inaugural Tower Records store in Sacramento—the last New York City outlet at 1961 Broadway closed permanently along with all remaining U.S. locations. The Mountain View store was among the final closures nationwide.

Sacramento remained significant as the city where Solomon began selling records back in 1941 and maintained a Tower Records presence for approximately forty years.

R5 Records, a new venture launched by Solomon at the Sacramento Broadway location, ceased operations in June 2010 and was sold to competitor Dimple Records. Dimple briefly reopened the store before shuttering all its outlets by 2019.

The Boston Tower Records building at Newbury Street and Massachusetts Avenue played a pivotal role in boosting local commercial appeal. Renovated by Frank Gehry during the late 1980s, this eight-story structure housed the store across its first five floors and featured embedded gold stars honoring Boston musicians. Virgin Megastore occupied the space from 2002 until 2007, followed by Best Buy. After a period of vacancy, it reopened as a T.J. Maxx location in 2016.

Online return

On June 1, 2007, Caiman, Inc., an online retailer, relaunched the Tower Records website from Montreal, Quebec. Although the company revealed intentions to reopen physical stores in Los Angeles, New York, and San Francisco within nine months, these plans never materialized. Kevin Hawkins, a former Tower buyer, was brought on board to assist with the relaunch but eventually left the company along with former employee George Scarlett. In 2009, Richard Flynn took over as President. Despite keeping the website’s operations based in Montreal, the brand’s comprehensive revival did not progress as anticipated.

In November 2020, Tower Records made a comeback online by launching a redesigned e-commerce platform that emphasizes vinyl records and branded merchandise, alongside a frequently updated digital edition of Pulse.

Tower Labs

Tower Labs debuted in Brooklyn, New York, in October 2022, marking Tower Records’ first physical location since 2006. According to the current president Danny Zeijdel, Tower Labs serves as a creative hub where artists and bands can host intimate community events reminiscent of backstage experiences. This initiative aligns with the brand’s strategy to strengthen artist engagement in a digital landscape while exploring possibilities for reopening a flagship store.

Argentina

Tower Records managed nine outlets throughout Argentina in cities such as Buenos Aires, Pilar, San Isidro, Puerto Madryn, Córdoba, and La Plata. The first Argentine location opened its doors in 1997; however, all stores ceased operations by 2006.

Canada

During the mid-1990s, Tower Records operated in Canada with its flagship store launching at the Toronto Eaton Centre in December 1995 and closing in 2001. Another Toronto branch located at Empress Walk in North York also shuttered shortly before the flagship’s closure.

Hong Kong

In the 1990s, Tower Records established two retail locations in Hong Kong: one situated on the seventh floor of Times Square in Causeway Bay and another in Diamond Hill.

Ireland

Tower Records Ireland functions under a licensing agreement with MTS Incorporated (USA) and is managed by Record & Discs Ltd., a subsidiary of Eclective. As of 2021, two Dublin stores remain operational on Dawson Street and within Easons on O'Connell Street.

Israel

Founded in 1993 as a partnership between Tower Records USA and local entrepreneurs, Tower Records Israel opened stores in Tel Aviv, Haifa, and Jerusalem. The Tel Aviv location gained recognition for attracting prominent Israeli pop artists. The last store closed its doors in Ra'anana in November 2015.

Japan

Tower Records Japan originated in 1979 as a branch of MTS Incorporated; its inaugural store launched in Sapporo in 1980. The following year saw the establishment of Tower Records Japan Inc. (TRJ), which became independent through a management buyout in 2002. TRJ remained unaffected by the bankruptcy of the U.S. parent company in 2006. By 2015, major shareholders included NTT DoCoMo and Seven & I Holdings.

By October 2014, TRJ operated 85 outlets across Japan, featuring the flagship Shibuya Store—one of the largest music retail establishments globally—spanning 5,000 m² over nine floors. Through its subsidiary NMNL, TRJ publishes complimentary magazines such as Tower, bounce, and intoxicate, and launched the music review site Mikiki in 2014.

TRJ held majority control of Napster Japan until May 2010 when the service was discontinued due to high operational expenses. Additionally, TRJ owns T-Palette Records, a label specializing in Japanese idol groups.

Mexico

Tower Records made its debut in Mexico during the mid-1990s with a multi-level store in Zona Rosa that featured a live DJ. Following the company's international bankruptcy, Promotora Musical—owned by Grupo Carso, which also controls Mixup record stores—acquired the Mexican outlets. Stores operated in Mexico City at Gran Sur, Altavista, and Mundo E, as well as Monterrey’s Paseo San Pedro, though most eventually ceased operations. The Puebla store located in Las Animas continues to operate.

Philippines

During the 1990s, Tower Records established three locations within the Philippines: Glorietta 3 Ayala Center in Makati City (1998), Alabang Town Center in Muntinlupa City (1999), and Robinson's Place Manila, all situated in the National Capital Region. By 2018, these stores had all closed. However, in 2020, Tower Records Philippines was revived, inspired by Filipino girl group Baby Blue, a sub-unit of the idol group MNL48.

Singapore

Tower Records maintained two retail outlets in Singapore throughout the 1990s: one at Pacific Plaza (opened 1993) and another at Suntec City. The Pacific Plaza branch shut down in 2001, followed by the closure of the Suntec City store in 2006 after Tower Records faced global bankruptcy and subsequently dissolved.

South Korea

In the 1990s, Tower Records launched stores in Seoul and Busan. The Seoul location was integrated into Synnara Record (currently Media Synnara) and later transitioned to M2U Record, while the Busan store eventually closed. The Seoul branch gained notable exposure by appearing in Seoul Broadcasting System’s 2001 drama Beautiful Days.

Taiwan

During the 1990s, Tower Records operated three large-format stores across Taipei’s prominent commercial districts that functioned as cultural centers for fashion and music enthusiasts. All Taiwanese locations ceased operations by December 2003.

Thailand

Tower Records entered Thailand’s market in the 1990s as a pioneer of comprehensive music CD retailing, profoundly influencing the local music industry. Multiple shops were established in Bangkok, including three flagship megastores within major shopping centers, with a key store situated on CentralWorld mall’s top floor. However, diminishing sales due to piracy and digital media consumption prompted gradual closures and eventual transfer of remaining stores to another retailer.

United Kingdom

Tower Records launched its UK presence with a Kensington High Street outlet in 1984, followed by a flagship store spanning 25,000 square feet at 9 Piccadilly Circus and additional locations at Whiteleys (Bayswater) and Kingston. By the early 1990s, the chain expanded further to include large entertainment stores in Birmingham and Glasgow alongside smaller shops acquired following Sam Goody’s withdrawal from the UK market.

Confronted with challenging market dynamics and financial difficulties tied to its US parent company, Tower Records withdrew from the UK. In 2003, its London stores on Piccadilly and Kensington were sold to Virgin Group. Virgin briefly retained the Tower brand before rebranding as Zavvi Entertainment Group Ltd after a management buyout. Zavvi entered administration toward the end of 2008 and shuttered the Piccadilly location by January 2009.

Documentaries

The 2015 film All Things Must Pass: The Rise and Fall of Tower Records, directed by Colin Hanks, chronicles Tower Records’ business history through archival footage and interviews with founder Russell Solomon, former COO Stan Goman, and notable patrons such as Bruce Springsteen and Elton John.

Another documentary titled Art Gods (2013) explores the evolution of Tower’s influential approach to in-store display design that originated at its Berkeley location.

External links

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