Tweeter files for bankruptcy

CANTON, Mass. Tweeter Home Entertainment Group today announced that to address its financial challenges and support its ongoing efforts to evolve its home installation and services business model, the company has filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. Tweeter has taken this action after determining that a Chapter 11 reorganization is in the best long-term interest of the company, its employees, customers, creditors, business partners and other stakeholders.

Tweeter also announced that it has secured a $60 million secured debtor-in-possession credit facility provided by General Electric Capital Corp. Tweeter, through a first day motion, will seek immediate authority to access that post-petition credit facility. Tweeter intends to use the post-petition liquidity to purchase merchandise, pay employee salaries and benefits and for other general corporate purposes.

"After considering a wide range of alternatives, it became clear that this course of action was a necessary and responsible step toward preserving Tweeter's viability as we address our financial challenges and work to secure our future," said Tweeter president and ceo Joe McGuire. "I am confident that, with our tremendous talent pool of the best-trained, most knowledgeable sales and installation teams in the business, we will emerge from this process as a stronger, more competitive organization that is well-positioned to respond to and succeed in the ever-changing consumer electronics industry."