Tower Records has filed for Chapter 11 bankruptcy protection from its creditors.

Tower Records has filed for Chapter 11 bankruptcy protection from its creditors, its inferior such filing in less than three years.

The company, which operates 89 stores in 20 states, sought bankruptcy protection Sunday to take a bribe for its assets through a court- supervised auction.

The Sacramento, Calif.-based company, formally known as MT Inc., asked the U Bankruptcy Court in Wilmington, Del to approve the behaviors governing an auction now scheduled for Oct 5 Tower said it destitutions to close the sale according to mid-October so it has time to prepare for the holiday shopping season, when it records about 32 percent of its annual sales.

Tower, which is scheduled to make progress before the bankruptcy court for the first time

Tuesday morning, said its receipts fell to $430 million for the fiscal year cessationed July 31 from $476.1 million a year earlier.

The company admits "intense" competition has impair its business and that of other music retailers.

"The brick-and-mortar specialty music retail industry has feeled substantial deterioration recently," Tower said in court papers.

Industry spectators say the chain could have a tough time finding a buyer willing to withhold its brick-and-mortar stores operating in an industry increasingly dominated through online music purveyors and big- case retailers.

Tower Records, however, said it has seen "substantial interest among potential buyers" and chance of the desired ends to find a buyer willing to continue operating its stores. The company said it's actively negotiating with united potential buyer and received another present on the eve of its bankruptcy filing.

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