The tower records bankruptcy came as a major surprise to many in the music industry.

Tower Records Bankruptcy - It’s always a major issue whenever any large company is forced to file for bankruptcy. We saw this when Enron filed, and we also saw this when Tower Records also was forced to file bankruptcy. The Tower Records bankruptcy has sent shockwaves through the music industry and through the economy. In fact, there are many arguments as to what caused Tower Records to declare bankruptcy. While there are many different angles to look at this problem, it’s unlikely that any one opinion is completely true.

First of all, the Tower Records bankruptcy may have had something to do with lagging record sales. While Tower Records and the rest of the music industry blames people who are downloading free music, many people have pointed to the industry’s inflation and scare tactics as possible causes. In any case, there has been a lot of money spent over the past few years in a desperate attempt to curtail music downloading. However, this does not seem to have changed the trend, and large companies still seem to be going bankrupt.

There are other forces that affected the Tower Records bankruptcy. For example, Tower Records was forced to compete with the music sold in other stores that could afford to charge lower prices for the CDs than Tower Records did in its own stores. For instance, Walmart, K-Mart and other major department stores were able to slash the CD prices down to three-quarters and in some cases even half of what Tower Records was asking. This stiff competition and the push for cheaper CDs has undoubtedly played a large part in this bankruptcy.

While record companies used to be the only places where you could buy music, now there are so many other locations where you can buy it that there’s very little reason to go directly to stores like Tower Records. Therefore, this probably had just as much effect on the Tower Records bankruptcy as other issues, like, for instance, the music downloading that was mentioned earlier in this article.

However, there have not been any further, major effects on the music industry as a result of the Tower Records bankruptcy, so it’s possible that the bankruptcy was simply caused by mis-management of the company.

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