Other suitors expected to come forward.
As expected, Great American, a liquidator based in Los Angeles, is the only suitor that put in a bid to acquire the inventory assets of Tower Records.
This bid is the "stalking horse bid," or "lead bid," in the Chapter 11 auction of the West Sacramento, Calif.-based chain, which will set the floor price that other bidders must compete against. With a lead bid determined, other bidders will have until Sept. 26 to put in a competing bid, as well as an executed asset purchase agreement, and evidence of the financial capability to complete the acquisition.
The bidders will have time to perform due diligence and amend bids to be ready for an Oct. 5 auction, with a hearing set for the following day to approve the winning bid, with the sale closing Oct. 9.
Other suitors have indicated to Billboard.biz that they plan on submitting bids for the September deadline to be eligible for the Oct. 5 auction.