RUMOR MILL
"We will do whatever maximizes the results for our creditors."
—Bill Teitelbaum, National Record Mart CEO
Tuesday, August 21, 2001
NATIONAL RECORD MART GOES BELLY UP
Filing for Chapter 11 Bankruptcy Protection, Embattled Chain Seeks to Avoid Liquidation
National Record Mart CEO Bill Teitelbaum has confirmed that the 129-store Pittsburgh-based retail chain, under pressure from the Big Five vendors to liquidate its assets for some time, filed for Chapter 11 bankruptcy protection last Wednesday (8/15). Teitelbaum tells HITS that NRM now has four months to either find new financing or a buyer. After that, they will be at the mercy of their creditors.
NRM has been on hold with all of the Big Five for the last two months at least, and on hold with other vendors for longer than that. NRM’s pre-petition debt load is $55 million, including banks, vendors and stray debt.
"We will do whatever maximizes the results for our creditors," says Teitelbaum. "No one here is happy about this. And although no one is lining up to give us new credit, we do believe that we can avoid liquidation."
NRM is one of the oldest retail music chains in the country, having opened its doors almost 70 years ago. Teitelbaum bought the company in 1986.
