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U.S. electronics chain Tweeter files for Chapter 11

ATLANTA, Nov 5 (Reuters) - Tweeter, an electronics chain with about 94 U.S. stores, filed for Chapter 11 bankruptcy protection for the second time in two years, and said it had begun store-closing sales.

In its filing with the U.S. Bankruptcy Court in Delaware, the company said it faced “a severe liquidity crisis brought on by slow sales.”

Consumers have cut back spending on discretionary items such as electronics in response to the global financial crisis and credit crunch, pressuring retailers.

On Monday, electronics retailer Circuit City Stores Inc CC.N said it would close 155 U.S. stores and was considering options to restructure.

Tweeter Home Entertainment Group Inc, a former publicly traded company, filed for bankruptcy protection in June 2007 and was later bought by Schultze Asset Management.

The latest filing shows that four affiliates -- Tweeter Opco LLC, Tweeter Newco LLC, Tweeter Tivoli LLC and Tweeter Intellectual Property LLC -- operated stores in 17 states under the Tweeter, Sound Advice, HiFi Buys and Showcase Home Entertainment names, primarily in Texas, Arizona, Illinois and the U.S. East Coast.

Tweeter’s filing listed assets of $50 million to $100 million and debts of the same level.

The biggest creditors include Sony Corp 6758.T and Samsung Electronics 005930.KS.

Tweeter has begun store-closing sales assisted by liquidators including SB Capital Group LLC, Tiger Capital Group LLC and Hudson Capital Partners LLC, the filing said.

A representative with Schultze Asset Management did not immediately return a call seeking comment.

Reporting by Karen Jacobs; Editing by Ted Kerr

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