What Really Happened to Tower Records? The Founder Who Couldn't Let Go
Tower Records conquered global music retail, but lavish expansions after Napster and a refusal to pivot to digital pushed the icon into liquidation by 2006.
“What Really Happened to Tower Records? The Founder Who Couldn’t Let Go” The Mystery Hook:
Tower Records was the music destination worldwide Stores in 15 countries, $1 billion in revenue Then founder Russ Solomon made one fatal mistake
The Intrigue:
Solomon refused to adapt to digital music Spent lavishly on store expansions in the 2000s (AFTER Napster) Treated music retail like it was still 1985 Competitors (Best Buy, Walmart) sold CDs as loss leaders to drive traffic Tower couldn’t compete on price but refused to compete on experience Filed bankruptcy 2004, liquidated 2006
Mystery Elements:
The stubborn founder: Solomon was 79 and wouldn’t change The missed opportunity: They COULD have been the music expert destination (like Apple Store became) The Japanese twist: Tower Records Japan bought the rights and still operates successfully there
Reveal: The founder loved music too much to see the business clearly. Nostalgia killed Tower Records.