Is This the End of Tweeter?

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?

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