Tweeter Files for Bankruptcy Protection

CANTON, MA-Tweeter Home Entertainment’s management has filed for Chapter 11 bankruptcy protection, a month after warning that it might need to take such a measure. The company has secured a $60-million debtor-in-possession loan credit facility from General Electric Capital Corp.

Tweeter filed in the US Bankruptcy Court for the District of Delaware. “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 in a statement.

Tweeter executives say they expect to keep their stores open for business and operations running normally. The move follows the closing of 49 stores, leaving the retailer with 104 units.