After three rounds of bidding, the auction process for Tower Records may come down to interested parties revisiting their bids after the holiday selling season. Firms believed to still be interested i

After three rounds of bidding, the auction process for Tower Records may come down to interested parties revisiting their bids after the holiday selling season.

Firms believed to still be interested in Tower include Hicks, Muse, Tate & Furst; Pamlico & Co.; and Sun Capital Partners, owner of the Musicland Group. It is believed that Sun Capital previously dropped out after the first bidding round; however, it is said to be back in the picture now that Tower's value expectations are down.

Sources suggest that bids were $110 million-$150 million. Lower bids had a larger cash component, while higher ones included substantial use of debt financing.

One of the deals is believed to have involved a pre-packaged Chapter 11 reorganization. Tower and its investment banker, Grief & Co., are said to be trying to avoid Chapter 11, but if they cannot, some other bidders might emerge, including Trans World Entertainment and Yucaipa Cos.

All parties cited either declined to comment or did not return calls.