Tweeter to sell assets for $38 million

CANTON, Mass. Tweeter Home Entertainment Group today announced that the "going concern" bid submitted by Schultze Asset Management, LLC was determined to be the highest or otherwise best offer in the Bankruptcy Court-supervised sale of the company's assets. Under terms of the accepted bid, Schultze will acquire substantially all of Tweeter's assets for $38 million in cash and the assumption of significant liabilities, subject to Bankruptcy Court approval.

Tweeter will seek court approval for the proposed sale transaction with Schultze at a hearing scheduled for July 13 at the U.S. Bankruptcy Court in Wilmington, Del. If approved, the sale transaction is expected to close that same day.

"Both Tweeter and Schultze are very excited about this pending acquisition and are committed to emerging from this restructuring process as a stronger, more competitive organization focused on delivering an outstanding service experience to our customers," said Tweeter president and ceo Joe McGuire. "The conclusion of this auction represents a very positive outcome for our employees, customers, and business partners. We look forward to completing the sale transaction."