Tweeter's Gone
11-03-08, 09:34 AM
#1
DVD Talk Gold Edition
Thread Starter
Tweeter's Gone
http://www.twice.com/article/CA66103...?desc=topstory
"Tweeter Sold To Liquidator
Consumer Electronics Chain Closes Distribution Centers
By Joseph Palenchar -- TWICE, 10/31/2008 9:04:00 AM
Canton, Mass. – Tweeter was purchased by a liquidator Thursday night after closing all of its distribution centers and pushing all inventory out to its stores, TWICE learned.
Company managers are currently being notified by conference call.
Last night, management held a conference call with top regional personnel to inform them of the decision, according to sources with close ties to the chain. The name of the liquidation company wasn’t mentioned in that call.
This morning, TWICE phoned a Tweeter buyer, whose voice mail message said, “They have closed the corporate offices of Tweeter.”
Tweeter management hasn’t returned calls.
Earlier this week, Tweeter was telling employees that it was closing all of its distribution centers in a move described by management to employees as saving up to $12 million per year, according to various industry sources.
Under the plan, suppliers would ship to stores directly.
“This is a measure that will help them to survive and move forward,” said one marketer who learned of the move from Tweeter employees earlier in the week. “This is not being positioned as a liquidation move.”
While several vendors contacted earlier this week by TWICE declined to go on the record about the supposed motives behind the warehouse closings, some were skeptical of management’s explanation. They said it was an unheard of move for any type of retail chain with Tweeter’s store count and store sizes. These vendors feared the warehouse closings were a precursor to liquidation.
In the days before the closings, some Tweeter vendors said they were unable to contact chain management.
Two marketers, however, thought the move was a plausible way to cut overhead and could work. “Most stores are over-built,” one of the marketers said. “Today’s environment does not require Tweeter to have 10,000-20,000 square-foot stores. Also, their car install business is only a shell of its former self, so my guess is that there are plenty of spaces to [store] whatever hodge-podge of inventory they want. I would also guess they don’t have a lot of inventory.” The chain also uses distributors to supplement its need, the marketer said.
Another industry executive pointed out that it ships products to “hundreds of little guys,” although “it costs a lot of money.” For vendors, shipping to individual Tweeter stores via UPS and Fed Ex rather via truck to a central warehouse “would be an additional expense for vendors, unless Tweeter pays the freight,” the marketer said.
One long-time retailer was skeptical that Tweeter intended to cut costs. “You don’t ship inventory out [to stores] unless you’re ready to get rid of everything,” he said. In fact, an employee at one Tweeter store acknowledged last Thursday that the chain was sending email invitations to past customers to participate in a special sales event over the weekend.
The closings followed the recent departure of Tweeter CEO George Granoff in October after 13 months. After Granoff left, Tweeter owner Schultze Asset Management Group brought in Craig Boucher, a corporate restructuring expert, to run Tweeter on an interim basis. Schultze bought Tweeter for $38 million in a bankruptcy auction last year."
"Tweeter Sold To Liquidator
Consumer Electronics Chain Closes Distribution Centers
By Joseph Palenchar -- TWICE, 10/31/2008 9:04:00 AM
Canton, Mass. – Tweeter was purchased by a liquidator Thursday night after closing all of its distribution centers and pushing all inventory out to its stores, TWICE learned.
Company managers are currently being notified by conference call.
Last night, management held a conference call with top regional personnel to inform them of the decision, according to sources with close ties to the chain. The name of the liquidation company wasn’t mentioned in that call.
This morning, TWICE phoned a Tweeter buyer, whose voice mail message said, “They have closed the corporate offices of Tweeter.”
Tweeter management hasn’t returned calls.
Earlier this week, Tweeter was telling employees that it was closing all of its distribution centers in a move described by management to employees as saving up to $12 million per year, according to various industry sources.
Under the plan, suppliers would ship to stores directly.
“This is a measure that will help them to survive and move forward,” said one marketer who learned of the move from Tweeter employees earlier in the week. “This is not being positioned as a liquidation move.”
While several vendors contacted earlier this week by TWICE declined to go on the record about the supposed motives behind the warehouse closings, some were skeptical of management’s explanation. They said it was an unheard of move for any type of retail chain with Tweeter’s store count and store sizes. These vendors feared the warehouse closings were a precursor to liquidation.
In the days before the closings, some Tweeter vendors said they were unable to contact chain management.
Two marketers, however, thought the move was a plausible way to cut overhead and could work. “Most stores are over-built,” one of the marketers said. “Today’s environment does not require Tweeter to have 10,000-20,000 square-foot stores. Also, their car install business is only a shell of its former self, so my guess is that there are plenty of spaces to [store] whatever hodge-podge of inventory they want. I would also guess they don’t have a lot of inventory.” The chain also uses distributors to supplement its need, the marketer said.
Another industry executive pointed out that it ships products to “hundreds of little guys,” although “it costs a lot of money.” For vendors, shipping to individual Tweeter stores via UPS and Fed Ex rather via truck to a central warehouse “would be an additional expense for vendors, unless Tweeter pays the freight,” the marketer said.
One long-time retailer was skeptical that Tweeter intended to cut costs. “You don’t ship inventory out [to stores] unless you’re ready to get rid of everything,” he said. In fact, an employee at one Tweeter store acknowledged last Thursday that the chain was sending email invitations to past customers to participate in a special sales event over the weekend.
The closings followed the recent departure of Tweeter CEO George Granoff in October after 13 months. After Granoff left, Tweeter owner Schultze Asset Management Group brought in Craig Boucher, a corporate restructuring expert, to run Tweeter on an interim basis. Schultze bought Tweeter for $38 million in a bankruptcy auction last year."
11-03-08, 09:50 AM
#2
DVD Talk Gold Edition
I know there was one of these in King of Prussia, across from where Tower Records used to be. They were formerly Bryn Mawr there; it's where I bought my last CD player (that's sitting in my garage waiting for a buyer 
).
).
11-03-08, 10:21 AM
#4
Member
Join Date: Sep 2008
Location: SHADO HQ
Posts: 143
Likes: 0
Received 0 Likes
on
0 Posts
Always overpriced compared to the big box stores and, later, the online outlets. Tried to compensate by promoting the expertise of their staff, but in general I didn't find them that much more knowledgable than anyone you might encounter at BB or CC. Had basically become a non-factor in the market, at least in New England.
11-07-08, 05:34 PM
#6
DVD Talk Hall of Fame
Mistitled thread. The article specifically says this is not a liquidation move, but rather intended to cut operations costs. It could, and I stress could, be a precursor to closure, but right now it's too soon to say. I suggest the OP retitles the thread.
I do agree with Straker's assessment. They had the brands to match Best Buy, but the prices did not. Ashame really since they electronics is their main business. You'd think they'd lower profit and make up for it in volume.
I do agree with Straker's assessment. They had the brands to match Best Buy, but the prices did not. Ashame really since they electronics is their main business. You'd think they'd lower profit and make up for it in volume.
11-07-08, 06:16 PM
#7
DVD Talk Limited Edition
There is couple near me but I have never been into one. I know they have had ads in the Sunday paper but I throw them in the crap pile with the other inserts I know I will not ever look at.
11-11-08, 10:17 AM
#8
Senior Member
Join Date: Jan 2005
Location: Eastern PA
Posts: 399
Likes: 0
Received 0 Likes
on
0 Posts
The tweeter by me is closing (Whitehall, PA location). I don't know if this means they are all closing, but their web site comes up with a store closing ad, so I would assume so. This weekend the sign at my store said 10 to 25% off, the we site says up to 40% today. I was debating picking up a Blu-ray player.
11-11-08, 10:59 AM
#9
DVD Talk Limited Edition
Both reps who answered the phone said they moved quite a lot of stuff over the weekend, so I would say the bargains are getting more scarce by the day.
I bought a lot from them over the years. Staff was very knowledgeable, but also very much on commission.
They used to be MSRP city, but softened over the years as smart shoppers would demo their gear, then order from the web.
11-11-08, 09:12 PM
#10
DVD Talk Hero
To note, Sound Advice seems to be going wayward as well (ours is finally closing, dunno how it stayed open as long as it did)
11-11-08, 10:16 PM
#11
DVD Talk Legend
It was still there last time I was over that way. There was also one in the Montgomeryville Mall. Never bought a thing there though. I did like looking around a bit though.
11-21-08, 10:17 AM
#13
DVD Talk Platinum Edition
I was never a big fan of their prices, but I called one of their stores today to see what deals they might have on 46" 120hz LCD sets (everything is supposed to be 20-40% off)....a demo Samsung unit was $2000 and a new Samsung was $2600.
I asked "Are those the discounted prices?" as they seemed kind of high, even for retail, and he says yes. He said it in way that sounded like he was acknowledging that those prices weren't a bargain at all.
So long Tweeter!
I asked "Are those the discounted prices?" as they seemed kind of high, even for retail, and he says yes. He said it in way that sounded like he was acknowledging that those prices weren't a bargain at all.
So long Tweeter!
Last edited by SmackDaddy; 11-21-08 at 10:19 AM.
11-21-08, 10:22 AM
#14
DVD Talk Limited Edition
Sound Advice is Tweeter.... Tweeter bought Sound Advice in 2004. I worked for SA at the time and we at SA knew it was the begining of the end!!!!
Last edited by Larry C.; 11-21-08 at 10:32 AM.
11-21-08, 10:39 AM
#15
DVD Talk Limited Edition
I was never a big fan of their prices, but I called one of their stores today to see what deals they might have on 46" 120hz LCD sets (everything is supposed to be 20-40% off)....a demo Samsung unit was $2000 and a new Samsung was $2600.
I asked "Are those the discounted prices?" as they seemed kind of high, even for retail, and he says yes. He said it in way that sounded like he was acknowledging that those prices weren't a bargain at all.
So long Tweeter!
I asked "Are those the discounted prices?" as they seemed kind of high, even for retail, and he says yes. He said it in way that sounded like he was acknowledging that those prices weren't a bargain at all.
So long Tweeter!
11-21-08, 11:16 AM
#16
DVD Talk Platinum Edition
You have to understand because they were smaller than the other stores they wouldn't buy as many units thus paying for for product than other chains. I was a sales manager and I could lower prices for customers and so could salesmen. We were pure commission which is good for the cust. That means we are gonna take care of you and be there to help even after you bought your product because we wanted you to come back to us. I would lower prices up to giving custs 10% over cost. Sound Advice was a much better company. Tweeter was awful. Because of Tweeter sound advice lost the B&W line which killed them. But thanks to tweeter being such an awful company I decided on a career change and boy the best thing that ever happend to me!!!!!!!!!!
Well, I never had luck in getting any meaningful discounts from them, thus they never got my business. Now Home Theater Store would work with me regardless of the amount of money I was spending. As far as I know, they are closer to Tweeter than Best Buy in size. But, that's neither here nor there.
When your 20-40% off prices are still higher then your competitions prices, there is something wrong.
12-03-08, 10:19 AM
#18
Member
Join Date: Sep 2008
Location: SHADO HQ
Posts: 143
Likes: 0
Received 0 Likes
on
0 Posts
Couldn't even make it to the planned final day on Sunday 12/7. All stores were closed & all employees fired on 12/2. According to reports, many employees are still owed back pay & commissions.
12-03-08, 03:48 PM
#19
DVD Talk Gold Edition
Thread Starter
But wait, they may be back...
(I don't know if I'd go back to work for them, but I imagine it would be hard to get a new job right away.)
http://www.twice.com/article/CA66196...?desc=topstory
Tweeter May Reopen Under Chapter 7
By Alan Wolf -- TWICE, 12/3/2008 1:36:00 PM
Wilmington, Del. — Tweeter could reopen its stores as early as tomorrow morning to continue liquidation sales through the weekend under Chapter 7.
A motion by the retailer to convert from Chapter 11 to Chapter 7 bankruptcy was granted by a federal court here yesterday after the company shut all its stores and terminated its staff. The conversion will free up cash, allowing Tweeter to continue liquidating its inventory and real estate, and will provide for a $900,000 fund from which employees are to be immediately paid accrued wages and commissions.
TWICE has received reports from Tweeter workers who were either told to return to work tomorrow or received inquiries about their availability. Whether the stores will reopen remains unclear, however, as the headquarters office has essentially ceased operations and Tweeter’s liquidators have filed an objection to the Chapter 7 conversion, demanding immediate payment of about $1.8 million for services rendered.
All parties reportedly were back in the United States Bankruptcy Court in Delaware this afternoon to hammer out an accord.
Tweeter said in its motion that it was forced to cease operations on Dec. 1 after its cash well ran dry. The chain was unable to access funding from primary lender Wells Fargo once the bank was paid back in full under terms of the Chapter 11 filing, and secondary lender Schultze Asset Management — Tweeter’s corporate parent — was unwilling to foot the bill for continued closeout operations.
Schultze will resume liquidation under Chapter 7 and will also fund the employee payroll account. A separate $1.2 million trust to cover legal expenses is being funded by Wells Fargo.
Tweeter unexpectedly terminated its corporate staff Monday afternoon and shuttered all of its remaining 70 stores yesterday just days before a planned shutdown.
Neither Tweeter’s 600 employees nor its liquidators — which include Hudson Capital Partners, SB Capital Group and Tiger Capital Group — were given advance notice of the action, which left about $14 million in inventory and customer orders in limbo.
Tweeter filed for Chapter 11 bankruptcy protection last month, citing “a severe liquidity crisis brought on by slow sales caused by declines in discretionary consumer spending.”
(I don't know if I'd go back to work for them, but I imagine it would be hard to get a new job right away.)
http://www.twice.com/article/CA66196...?desc=topstory
Tweeter May Reopen Under Chapter 7
By Alan Wolf -- TWICE, 12/3/2008 1:36:00 PM
Wilmington, Del. — Tweeter could reopen its stores as early as tomorrow morning to continue liquidation sales through the weekend under Chapter 7.
A motion by the retailer to convert from Chapter 11 to Chapter 7 bankruptcy was granted by a federal court here yesterday after the company shut all its stores and terminated its staff. The conversion will free up cash, allowing Tweeter to continue liquidating its inventory and real estate, and will provide for a $900,000 fund from which employees are to be immediately paid accrued wages and commissions.
TWICE has received reports from Tweeter workers who were either told to return to work tomorrow or received inquiries about their availability. Whether the stores will reopen remains unclear, however, as the headquarters office has essentially ceased operations and Tweeter’s liquidators have filed an objection to the Chapter 7 conversion, demanding immediate payment of about $1.8 million for services rendered.
All parties reportedly were back in the United States Bankruptcy Court in Delaware this afternoon to hammer out an accord.
Tweeter said in its motion that it was forced to cease operations on Dec. 1 after its cash well ran dry. The chain was unable to access funding from primary lender Wells Fargo once the bank was paid back in full under terms of the Chapter 11 filing, and secondary lender Schultze Asset Management — Tweeter’s corporate parent — was unwilling to foot the bill for continued closeout operations.
Schultze will resume liquidation under Chapter 7 and will also fund the employee payroll account. A separate $1.2 million trust to cover legal expenses is being funded by Wells Fargo.
Tweeter unexpectedly terminated its corporate staff Monday afternoon and shuttered all of its remaining 70 stores yesterday just days before a planned shutdown.
Neither Tweeter’s 600 employees nor its liquidators — which include Hudson Capital Partners, SB Capital Group and Tiger Capital Group — were given advance notice of the action, which left about $14 million in inventory and customer orders in limbo.
Tweeter filed for Chapter 11 bankruptcy protection last month, citing “a severe liquidity crisis brought on by slow sales caused by declines in discretionary consumer spending.”
