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Is This the End of Tweeter?

Executive move, being called a "temporary transition period," was made "in light of the current economic conditions."


tweeter_end
Tweeter Newco has replaced president and CEO George Granoff with a corporate restructuring and crisis management specialist.

Craig Boucher of CRG Partners Group, a Bethesda, Md.-based restructuring firm, has assumed the role of Chief Restructuring Officer for the company.

Unsubstantiated rumors are flying that this move might signal the imminent closure of the 104-showroom chain as the chairman calls the move a "temporary transition period."

In a letter to employees, Tweeter Newco chairman George Schultze wrote that the move was made "in light of the current extreme economic conditions and the company’s recent performance," and that the move "is in the best interest of the company, as well as all other parties in interest."

The company's senior management team will now report directly to Boucher, whose duties include:
  • Developing and implementing strategic alternatives as approved by the Board of Directors of Tweeter Newco
  • Assisting management in the day-to-day operations of the company
  • Communicating with all necessary stakeholders
"We appreciate all employees’, vendors’, customers’ and other counterparties’ continued support and patience in working with us during this temporary transition period," wrote Schultze, who bought Tweeter out of bankruptcy for $38 million in July 2007.

Granoff had been on the job a little more than one year and was touting Tweeter's new concept store just a few months ago. Tweeter filed for bankruptcy in June 2007.

Circuit City, of course, has also had its struggles in 2008. An analyst at KeyBanc Capital Markets says Circuit City will likely file Chapter 11 bankruptcy as early as Q1 2009. Bernard Sands, a credit reporting company that advises manufacturers on what retailers to use, withdrew its recommendation for Circuit City last week.

Could this be the end for both Tweeter Newco and Circuit City?

Leave us a comment below.

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Article Topics

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About the Author

Jason Knott, Editor, CE Pro
Jason has covered low-voltage electronics as an editor since 1990. He joined EH Publishing in 2000, and before that served as publisher and editor of Security Sales, a leading magazine for the security industry. He served as chairman of the Security Industry Association’s Education Committee from 2000-2004 and sat on the board of that association from 1998-2002. He is also a former board member of the Alarm Industry Research and Educational Foundation. He is currently a member of the CEDIA Education Action Team for Electronic Systems Business. Jason graduated from the University of Southern California.

28 Comments (displayed in order by date/time)

Posted by Paul  on  10/26  at  07:44 PM

Just a month or so back I got a mailer from Tweeter touting the new Samsung tv lines. The ad indicated thety would be available for viewing and purchase. I had wanted to view and perhaps purchase the Samsung 55A950 which was in the ad. When I went to a Tweeter store(in Orland Park,IL), they didn’t have any of the product they advertised and a salesman told me they would have it for over a month. I went right to ABT, they had the product, and I bought it. Goodbeye Tweeter! Someone turn out the lights.

Posted by Pat Asuuli  on  10/27  at  08:42 AM

Does Jeff Lascar still work their? Does he still not wear deoderant? Maybe the smell coming off his armpits was scaring people out of the store. Man that guy could clear a room faster than anyone I know.

Posted by sandy vaseline  on  10/28  at  03:13 PM

my dad used to tell me nothing could be worse than being f***ed with sand in the vaseline.

I guess that is what the outside technicians felt
like today when they were told that the company they worked so hard for was going to f em.After friday they have no jobs. how is it that when you leave a company you have to give two weeks notice,
but they don’t have to give squat?no wonder there is no loyalty to a company anymore.

That is probably what the people in pennsylvania probably felt like when they were told they have until friday to empty the building.

Ditto the people in the distribution centers.

Ditto the people in the service centers.

Ditto the landlords.They should have known better. a lepoard can’t change it’s spots.
You should have gotten more money up front.

Oh well, they deserve what they get for believing
that someone was committed to turning this once great company around. When it comes down to commitment or a balance sheet, the balance sheet wins every time, no matter what the cost in peoples lives.(here’s your vaseline)

As for the customers there is enough vaseline (and sand) for them too.
They have to try and get their equipment back after the doors close.(better hurry)

There is even enough for the people who wait for companies to go under so they can get a “good” deal. wait til they find out that the set they bought has no factory warranty on it because it used to be some other guys set.

I guess in the end, the saddest thing is that the company could have been turned around(The guy who bought the service department in California is running it right and making a profit) and been profitable.

If had had been run like a business and not like a circle jerk.

TOO BAD,,SO SAD..HERE’S ..YOUR VASELINE

Posted by SeeYa  on  10/28  at  03:42 PM

Yup-The fat lady is singing!

All distribution is closing down including the new one in PA they just finished last week!You can’t make this stuff up!

Every employee is about to get screwed-they’re trying to weasel around the Massachusetts “30 day notice” closure law and bleeding it slow….

The big joke is the clowns told us in the meeting yesterday that the stores are the new warehouse/distribution centers-as if this company is going forward-like anyone is stupid enough to belive it.Stick a fork in it-layoffs start friday-Get out now before the flood!

Posted by You can make this stuf up really you cant  on  10/28  at  04:06 PM

This company is like watching keystone Cops..Its just to funny. Want more here’s some… Weeks after Tweeter received the new Klipsch line of speakers after almost a 10 year hiatus the upper Brass had no idea they even carried this name brand again. No kidding. One day a senior Regional sat in a store when a Manager said..” Hey I have these New Klipsch speakers,do we sell them again” The answer was ... “Huh, what do you mean..” Just sad folks sad..
For those who got the layoff notice don’t feel so bad. I heard some Managers found out they were closing the Main MA distribution center from the guy who washes the windows..Now that’s a well run machine…I hear singing in the background.
Laaa la la laaaa la la laaaa la la

Posted by Former Employee  on  10/30  at  10:54 AM

Tweeter was going out a year ago when the bankruptcy was filed.  The so called “turn around” for the company never happened.  It was Corporate jargon that the leadership could not back up.  No major decisions or changes were made in the 8 months i was there following the bankruptcy that showed me they would have been able to turn the business around.  You can only see bad decisions made so many times before you know the bottom is about to fall out, that is why i jumped ship.
Little fact for everyone, 3 days ago, a message was sent to all distribution personnel at Tweeter that the distribution centers are to be closed and product moved to the stores.  You can’t support 100 stores without your own distribution network so be warned, step one of the close down of Tweeter is underway.  The official announcement should come in the upcoming weeks.

Posted by TWEET TWEET AND THE BIRD DIED!!!!  on  10/30  at  04:41 PM

The company could have been better run if three year old in pull-ups ran it. The big wigs sit there with there fingers plugging there butts and laugh and joke and we the actual people who give a damn about our job are trying to figure out what to do with ourselves how to pay our bills in the next upcoming months. We were first told we would get severance pay and now there are talks we have no money for severance pay luckily my pay check didn’t bounce today. Lucky enough I have someone who can support me, i feel bad for the poor ######## i work with who aren’t as fortunate as me STOP STRINGING US ALONG LET US GO NOW!!! at least we will have time to find something. Just let the bird die, while all ten customers we have left still have a good taste it their mouth.

Posted by THE AXE MAN COMETH!!!  on  10/30  at  04:45 PM

we were gathered on monday in the corporate office for a big announcement after nothing new was said someone asked so whats our short term goal. the reply “to stay open until x-mas”. News flash with no products to support our customers WE AREN’T GONNA MAKE IT!!!!!

Posted by I M BITTER  on  10/31  at  03:05 AM

I M BITTER because when i look back, “I shoulda toined left at Albuquerque”.Had I known then…

Then the president at least tried, although he hired all the wrong people.


This is just television and stereo sales and service, what in the world did judy q want with grand pianos in the stores at christmas.maybe it was her eyes,she just couldn’t see people go to a tv store to by tv’s and stereos. they go to concert halls to hear pianos.
At least she did something. The person the last president hired hasn’t done a damn thing. but then again he was hired by george g who didn’t know the tv and stereo business either, having experience in painting and partys isn’t quite the same is it?
In his defense ..Tweeter Chairman George Schultze praised Granoff’s acumen, citing Granoff’s, “established record of focusing organizations on their core strengths.
Maybe tweeter just didn’t have any core strenghs.
They seem to always look at two people for a position and the take the loser and let the right one stay in california, making money, instead of sitting at his desk getting a bj from c.n.(glub glub, slurp slurp,) spit? or swallow?
Maybe if she went (down) from store to store we wood(y) all feel beter.(what do you think tim?)

In the life cycle of any endevor it starts out with totally committed people who pour themselves and their lives into it, then it goes to the next layer, of people who work hard for their career, then to the layer of people who figure"what the heck if it doesn’t work out i will go somewhere else” And finally to the layer where it’s “I,m going to get what I can and screw the rest”(or face f’ em)

I guess I M BITTER because i see the little people who work really hard (no pun intended tim)
at their jobs to make the company better, and then i see the supposed leaders getting out the vasoline and sand to give us our christmas bone.

It is really sad, there are small chains out there in CE that are making the right decision and making a profit. I guess a degree from a top university does’n make you smart. But it does teach you not to care about the people you have been entrusted with.

Oh, if your interested in selling all the companies assetts for .25c just pust it to .(JavaScript must be enabled to view this email address).  I know it is more then it is worth, but i am feeling generous.

Posted by Its Over..  on  10/31  at  08:02 AM

Liquidation time is here…over 200 people let go today..More coming.

Back to the porn business…

Posted by john paller  on  11/05  at  01:44 PM

Im i reading about compusa ?

Posted by JoeP  on  11/19  at  08:54 AM

Beware…if you had any deposits down with tweeter for any installations or holds, they will take your money.  I have lost 2500.00 with no date in sight of when I will ever see this money again.  I have never been this frustrated..my money has been stolen, and no one seems to be able to help. The employees at the store have been great, but it seems to me the bk judge and the attorney general need to get this resolved so the little guy doesnt have to wait months for refunds of their deposit money…..thanks for the holiday gift of robbing me and my family of 2500.00…...merry christmas.

Posted by motion  on  11/20  at  07:51 AM

Joe P, email Andrew D’Amico@twtr.com.
ask that sleaze lawyer why Tweeter honors gift cards but not your lawfully owed refund. he’ll tell you that a federal court order overrides all else. if that’s the case, ask why Tweeter is unable to discount Polk and Klipsch speakers at the liquidator’s disgression until agreements are reached with those vendors to do so. your money is now Tweeter’s property because the lawyers requested it of the court. it didn’t have to be this way Joe P.

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