Tweeter shuts stores, fires 600

THE ASSOCIATED PRESS
Published: December 3, 2008

BOSTON—Bankrupt home electronics retailer Tweeter has abruptly closed 70 stores nationwide five days ahead of schedule and fired more than 600 employees.

The Canton-based company on Tuesday converted its case to a Chapter 7 liquidation.

Owner Schultze Asset Management shut down the stores after paying millions of dollars to the largest secured creditor - Wells Fargo. Schultze made the move after deciding against putting additional money into the company to cover expenses to wind down operations.

Tweeter stores, which had been having liquidation sales, had been scheduled to close Sunday.

Tweeter also requested that $900,000 be put in a fund for unpaid wages, commissions, and payroll taxes for workers.

The Massachusetts attorney general said consumers who bought merchandise, gift certificates or warranties from Tweeter should file a Proof of Claim form with the Delaware Bankruptcy Court to try to recover their money.