Tweeter Home Entertainment Group, Inc., whch declared Chapter 11 bankruptcy on June 11, accepted a $38 million bid for a "going concern" acquisition from Schultze Asset Management, a firm specializing in "distressed positions."
Tweeter Home Entertainment Group announced a massive "restructuring" of its operations on March 22. The chain will close 49 stores, including all operations in California, New York, Alabama, and Tennessee, and trim its workforce by 20%. The chain's remaining 104 stores will be remodeled to conform to the chain's current "CE playground" theme.
Large companies may be chopping jobs by the thousands, but there are signs elsewhere that the economy is still booming. Recent figures from electronics retailers Best Buy and the Tweeter Home Entertainment Group and from Sony Electronics indicate only a partial slowdown in spending for quality audio/video gear.
Success begets success. Canton, Massachusetts-based Tweeter Home Entertainment Group, Inc. announced February 2 that it has acquired Home Entertainment of Texas, Inc. The acquisition gives Tweeter a solid foothold in the Southwest, and is the latest in a takeover campaign that has enveloped two successful regional chains in each of the past two years.
Canton, MA-based Tweeter Home Entertainment Group (NASDAQ: TWTR) has gone public. Last Thursday, July 16, the East Coast audio and video retailer launched an initial public stock offering of 2.71 million shares at an offering price of $17/share.
The ultra-High End may be stagnant in some areas, but the rebound in mainstream consumer electronics is visible everywhere. Canton, Massachusetts-based Tweeter Home Entertainment Group has announced record results for the quarter ended September 30, 1999: an increase of 39.5%, or $74.6 million compared to $53.5 million in the same period last year. The results are similar to those posted recently by nationwide electronics chain Best Buy, which also had a record quarter. Tweeter's comparable store sales increased 5.2%, not counting results from the recently acquired Home Entertainment and DOW Stereo/Video chains.
Tweeter Home Entertainment Group, Inc filed for Chapter 11 bankruptcy protection on June 11. The move was not entirely unexpected, since the company had indicated in May that it might be forced to file if it could not access additional funding.
Tweeter Home Entertainment Group, Inc., the national electronics retail chain, has teamed with Sonos, Inc., developer of wireless multiroom music systems for the digital home, to bring "the digital home experience directly to the retail floor." The retailer will run broadband Internet connections to Sonos Digital Music System point-of-sale displays at over 150 Tweeter locations, to give music lovers live demonstrations of music server systems.
On May 10, Tweeter Home Entertainment Group announced that it has insufficient working capital to cover its long- and short-term costs and may have to consider filing for Chapter 11. The immediate cause of the shortfall is the cost of closing 49 stores and two distribution centers. This Week in Consumer Electronics reported specifically that lump sum payments to lease-holding landlords was a contributory factor.
Last week, Tweeter Home Entertainment Group, Inc. announced that the company has reached an agreement in principle to acquire DOW Stereo/Video, Inc., located in San Diego, California. DOW is a nine-store specialty consumer-electronics retailer with sales of approximately $38 million, and has been in business in the San Diego market for over 30 years. The transaction is expected to be completed on or about July 1, 1999. Tweeter says it will pay approximately $5.5 million for the company excluding acquisition costs, and has the option of paying approximately $500,000 of the purchase price in Tweeter common stock.
Last week, Tweeter Home Entertainment Group announced that it has reached an agreement in principle to acquire United Audio Centers, located in the Chicago, Illinois area. United Audio describes itself as a seven-store specialty consumer electronics retailer with annual sales of approximately $48 million, and says it has been in business in the Chicago market for over 40 years. The companies expect to complete the transaction on or about April 1, 2000, and note that the agreement in principle to acquire United Audio is subject to various terms and conditions, as well as to regulatory approval.