Tweeter files for bankruptcy
June 11th, 2007Tweeter, the consumer electronics retailer, has filed for Chapter 11 bankruptcy. The 130-store regional chain has been squeezed by falling prices on flat-panel televisions, competition Wal-Mart and other mass retailers, and a market shift away from projection TVs, a Tweeter specialty.
Given America’s recent HDTV buying binge, you might think it would be the perfect time to be in the business Tweeter is in. But shrinking margins are a killer, and even its much-larger rival Circuit City finds itself under pressure. Despite the current environment, however, Best Buy profits are up 18.5 percent last quarter.
Tweeter also operates stores under the names Sound Advice, HiFi Buys and Showcase Home Entertainment. The company plans to continue operations as it reorganizes under bankruptcy laws.
Today’s Tip: Waste no time. Tell your broker you have a new rule, starting today. Anytime a company pulls its name off an arena, it’s time to SELL.
• Link: Reuters