Schwartz Brothers finds buyer for audio business

April 10, 1992|By Michael Dresser | Michael Dresser,Staff Writer FBB

Schwartz Brothers Inc., which shut down its videocassette distribution business and filed for bankruptcy protection last month, said yesterday that it has found a buyer for its remaining business, clearing the way for the Lanham-based company to cease operations.

Schwartz said Independent National Distributors Inc., the parent company of Los Angeles-based California Records Distributors Inc., will buy Schwartz's entire inventory of recorded music and act as Schwartz's agent to collect money owed to its audio business.

No price was announced for the inventory purchase, but Schwartz said it was paid "full value." The agreement is subject to approval by the federal bankruptcy court in Rockville. Schwartz said it expects the court to act in 30 to 40 days.

Schwartz will continue to serve its customers in the interim, the company said.

The announcement was not a surprise. Schwartz said March 23 when it filed for Chapter 11 bankruptcy protection that it was doing so only to buy time to sell its audio business.

Schwartz closed its money-losing videocassette distribution business March 9 after a deal that would have brought it a cash infusion from an outside investor fell through.

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