LOS ANGELES: Wherehouse Entertainment has hired crisis and financial specialists Sitrick & Company to help navigate its Chapter 11 bankruptcy protection filing of two weeks ago.
The specialty retailer, which sells music, DVDs, videocassettes, video games and related items, currently operates 370 stores in 23 states under the names of Wherehouse Music, Tu Musica, and Xchange.
Wherehouse president and CEO Jerry Comstock said that the filing was the result of sales declines, which he attributed to music pirating and pricing pressure from discount stores.
Sitrick representative Anita-Marie Hill, who is acting as a Wherehouse spokesperson, said her company is charged with developing communications for critical audiences, including vendors, employees, landlords, and customers.
During the restructuring, Wherehouse expects to close about 120 stores, and has already shuttered an additional 30.
This is Wherehouse's second bankruptcy filing in less than a decade.
The retailer also filed in 1995, and emerged in 1998 under new ownership.