Court OKs Purchase of Wherehouse Stores

From Dow Jones/Associated Press

The Bankruptcy Court overseeing the Chapter 11 case of Wherehouse Entertainment Inc. has approved the $41-million sale of the music retailer’s stores to a joint venture led by Trans World Entertainment Corp., which owns other music chains.

The sale price includes $35.6 million in cash and the assumption of payroll and other liabilities estimated at about $5 million. Falling sales led Torrance-based Wherehouse to file for bankruptcy protection in January.

Albany, N.Y.-based Trans World owns chains including FYE, Camelot Music and Record Town.