Local management and a Japanese investment firm have bought the Japanese arm of Tower Records Inc., the country’s third-biggest music retailer, from its U.S.-based parent company for $122 million.
The deal signs over Tower Records’ 51 outlets in Japan, including its multi-floor flagship store in downtown Tokyo, to Tower Records’ local management team and to Nikko Principal Investments Japan Ltd., a unit of Nikko Cordial Corp.
Nikko spokesman Joichi Ito said his company finalized the buyout Thursday with San Francisco-based MTS Inc., parent company of Tower Records. MTS will retain ownership of its Tower Records stores in seven other countries.
Nikko said it wants to capitalize on Tower Records’ well recognized brand name to expand operations in Japan.
Heading up the new company will be Tower Records’ current Far East division president Keith Cahoon and the company’s top Japanese executive Akio Moriwaki.