Tower Records filed for bankruptcy in 2004 as digital music and online shopping weakened its business.
Founded by Russ Solomon in Sacramento, California, Tower Records grew into an internationally recognized music retailer. Its large stores were known for extensive selections, prominent locations, and strong connections with music fans.
The company faced mounting debt, competition from online retailers, and the shift from physical albums toward digital downloads. Tower filed for bankruptcy in 2004 and later liquidated its U.S. operations in 2006. Stores in some other countries continued under separate ownership for a time.
Tower Records is sometimes confused with Virgin Megastore or Sam Goody, which were different retail chains. Its bankruptcy reflected a broader transformation in how recorded music was sold and consumed.