Already liquidating under a Chapter 11 bankruptcy plan, Tweeter threw in the towel and abruptly closed all of its 70 stores nationwide on Tuesday. More than 600 employees lost their jobs, and the company has petitioned a Delaware court to convert the Chapter 11 to Chapter 7 bankruptcy protection. Many customers have paid some or all of the price of equipment that they have not yet received, and they may never get their purchase or their money back, as they now have become creditors, far down the list of those with claims against the defunct company.
These can be perilous times for consumers, and this is not a good time to pay in advance for equipment. It’s better to wait and pay on delivery — even if it means that you spend a little more — rather than take the risk of a downturn in your retailer’s financial condition. Sadly, we can be certain that Tweeter will not be the last consumer electronics casualty of this weak market.