89 Stores. 20 States.
The End of an American Music Icon.

The Engagement

Tower Records, one of America's most beloved music retail chains with 89 stores across 20 states, filed for Chapter 11 bankruptcy in August 2006. Following a 30-hour auction, a U.S. Bankruptcy Court in Delaware approved the sale to a consortium including Great American Group, Hudson Capital Group, Crystal Capital Fund, and Retail Consulting Services as joint Designation Rights Purchasers — confirmed in Case No. 06-10886 (BLS), United States Bankruptcy Court for the District of Delaware. The winning bid of $134.3 million initiated going-out-of-business sales across all U.S. locations, with the final Tower Records store closing on December 22, 2006.

This engagement was led by Eaton Hudson founder James Schaye through Hudson Capital Partners, the predecessor firm whose institutional track record is now represented under the Eaton Hudson banner.

Scope of Work

• Court-designated Designation Rights Purchaser for all Tower Records U.S. locations
• Management of going-out-of-business sales across 89 stores in 20 states
• Lease designation and real estate disposition across all store locations
• Coordination with co-purchasers Great American Group, Crystal Capital Fund, and Retail Consulting Services

The Eaton Hudson Advantage

Tower Records required specialized expertise in managing high-profile specialty retail closures with significant brand equity and emotional resonance for consumers. The engagement demonstrated the ability to manage complex, multi-state going-out-of-business processes while respecting the legacy of an iconic brand — a discipline that remains central to Eaton Hudson's approach to every disposition engagement.