Firms Said to Stop Supplying Tower Records.

At least three major music companies cut off CD shipments to Tower Records on Thursday after record executives said that the iconic music retailer had stopped paying its bills.
Universal Music Group, Warner Music Group Corp. and EMI Group sources confirmed privately that each of the companies had stopped sending albums to the Sacramento-based chain, which has struggled with declining sales as digital technologies have changed the way consumers buy music.
Sony BMG Music Entertainment also suspended shipments, according to industry sources. The four record companies declined to comment.
The move comes just days after Tower Records named a new chief executive: crisis management and bankruptcy specialist Joseph D'Amico. Tower executives informed record companies this week that they would not pay outstanding invoices, according to sources familiar with the conversations.
Tower executives, including D'Amico, did not return phone calls. A Tower spokesperson declined to comment.
Industry insiders and analysts said it was unclear whether Tower Records had run out of money or was attempting to pressure the record companies to extend better terms.
If the music companies suspend shipments for long, Tower Records could be forced to shut its 89 locations, including the famous store on Los Angeles' Sunset Strip, analysts said.
Tower Records confirmed Thursday that it was working with a Los Angeles investment bank to sell the company.
The retailer reportedly received at least five bids this year from private equity firms. When a sale failed to materialize, D'Amico was hired in what is the third management shuffle in four years.
The hard line by record companies, insiders said, is a response to Tower's unilateral decision to withhold payments after music executives had extended the chain credit for years.
"There are some music companies that have been trying very hard to keep Tower afloat," said an executive at one of the music companies familiar with the talks who requested anonymity because of the situation's delicacy. "They owe a lot of money."
Music fans bemoaned the potential loss of a retailer that catered to fanatical tastes.
"Led Zeppelin changed my life, AC/DC changed my guitar playing, and Black Sabbath changed my approach to songwriting