The latest problem is the 401k accounts, Fidelity cant release them for us to rollover elsewhere until we're officially terminated, (we still show as active employees) No one to contact at Tweeter, Fidelity says they are working on it, but its been awhile now. ouch

Steve's post is spot on.We had fine Execs,ScottSrolis,JoeLopiccolo,James Garelli,great trainers,JeffRogers, Andy Lippit, and from my perspective some of the most conscientious,savvy commissioned sales people that this industry has seen in a long time. I have been in retail over 35 years now, and the demise of Tweeter is one of the saddest days in my history. How do we teach, coach, and cousel young people into always doing the right thing, learning the sales craft, and being loyal to your company, when the Law of the land lets these crooks hide behind their coattails. Mentoring in this environment is nearly impossible. I worry for all retail, and just as much for the consumer....a former Tweeter GSM

Has any (former) Tweeter employee sought legal counsel to date? Class action suit concerning shenanigans pulled by Schultze?

Steve
thanks for the mention. Fact is Tweeter was, in its heyday, one of the best employers on the planet.It may have ended regardless of who was in charge or what decisions were made in the recent past. However, it did not have to end with the lack of professionalism, impulsiveness or disrespect to the customers or employees. Although we should have seen this coming. When Schultze first took over the company his squeeze play with Mcguire was to fire people irrespective of their role with the company. He even fired the only person who could assess state taxes resulting in over 250k in fines. His solution was brilliant, hire them back. That was the first shot across the bow that this rich kid in charge of a hedge fund was not a professional businessman but a wannabe player in the specialty space. And dont let his "board of advisors" off the hook. This group needs to grow a pair and tell him when he has his head up his asss. The end likely would have been the same but without the indignity, embarrassment or humilation to the customers, employees, brand or industry.

At the end Tweeter was more than just the Tweeter of Sandy Bloomberg and the many top notch people there. During their acquisition they absorbed the many fine regional independents around the country (Sound Advice for one prominent example) that had been the alternative for the consumer looking for better service and/or products in their markets. With their passing (and Circuit's failure to fill this niche) there is a great gap between the custom installation oriented independent and the mass market retailer. Who will educate the next 'generation' regarding performance differences and new technologies? Not all of the amazingly growth in CE product popularity was the result of massive ad campaigns - much was the result of hundreds of thousands of individual presentations made over the years in these retailers.

The economy has won. While I still believe in $10.00 a foot audioquest cable, the consumers believe in $100.00 HTIB. They believe in $770.00 plasma big screens. They believe in IPODS as the best sounding things ever. High Fidelity is gone as we no it. Yes, I do believe in a sound stage and imagieng but that is not the average consumer.
Yes, Tweeter is done but they were just one of the last store clinging onto a hope people would want something better. Leave it to Sony to make different tv models to ship to cosco and bjs , that are lower performance, but have the right buzz words to make tweeter loook more expensive on better models.

Take heart fellow travelers, Schultze may not emerge unscathed. The Massachusetts Attorney General and the Federal Department of Labor are both interested in the funding for the healthcare plans and there is a class action lawsuit already underway in Delaware regarding Schultze's violation of the WARN Act.

I take a little comfort in knowing that Schultze's abysmal failure to revive and maintain a relatively small CE operation like Tweeter will be seen as an embarrassment by the world of big business. Schultze Asset Management will have to carry rhe stigma of their leader's failure, incompetence and dishonesty for a time as well. When I look in the mirror I can tell myself that no one in America despises me. Schultze however can't. Tweeter has left the industry under a cloud of shame, deceipt and fraud thanks to this "

More than a thousand employees. Lots of anger and bitterness. No accountability. Blaming Schultze is a joke. He bailed Tweeter out the first time. He was nothing more than a heart-lung machine for a patient that was comatose and brain dead. Remarkable that he takes the rape for this, even from you, Steve!! Of course it was Sandy's fault, and Jeff Stone's, and many of those thousand employees who are today's victims.

No One's Fault just found fault with over 1000 employees. who is this dimwit?

To No One's Fault: I agree that Bloomberg, Jeff Stone and began Tweeter's demise. But that's another subject. My point is the way Schultze Asset Management exited the business leaving employees and consumers, among others, hanging.

To No One's Fault: I agree that Bloomberg, Jeff Stone and began Tweeter's demise. But that's another subject. My point is the way Schultze Asset Management exited the business leaving employees and consumers, among others, hanging.

The true downfall to Tweeter was Judy when she decided that spending money on gadgets and widgets that did not fit the Tweeter model. Also the constant change without ever running with an idea that kept us from being what Home Entertainment, Sound Advice, and the rest of the little guys that were consumed by Tweeter. Schultze had no idea what he was getting himself into and has no clue how to get out of this issue with integreity. The one thing that Schultze did do was give all of us 1 extra year of working for what was once the best of the best in consumer electronics.

There is an appropriate way to shut down a company. And George Schultze can write a book on how not to do it. He has left his faithful employees without a straw to grasp on to. Had George shut this down with dignity and integrety, there wouldnt be so many people posting their disgust for George Schultze. If George would have done this right you would have read many sad eulogies mourning the death of a great company. Bur since George decided to steal from his customers and employees, all anger is directed at him. Nobody is angry that he decided to pull the plug, they are angry because George acted like an everyday street thug stealing from anyone he could. I am sure his investors are proud of the way he lied and cheated to close this company down. I guess it will be our day to laugh when he cheats his hedge fund investors out of their millions. One thing is certain, a leopard does not change it spots, and the day will come when SAMCO makes news again, hopefully the SEC will be of more assistance than the bankrupcy court has been to us.

See link below, explains why we were all shut down overnight on Dec 1st once Shultze had paid off Wells Fargo......from netdockets.wordpress.com


Tweeter Opco Seeks Conversion to Chapter 7; Party Immediately Objects
December 3, 2008 · No Comments
Tweeter Opco, LLC filed a motion yesterday requesting that the bankruptcy court convert its chapter 11 cases to cases under chapter 7 of the bankruptcy code. The debtors have requested a hearing on the motion today. Tweeter stated that it has been informed by Wells Fargo Retail Finance, LLC that the conditions for termination of Tweeter’s right to use Wells Fargo’s cash collateral had been met and, as a result, Tweeter’s right to use cash collateral ceased on December 1, 2008. Tweeter states that it needs the use of cash collateral to continue to operate its businesses and conduct an orderly liquidation. Further, Tweeter asserts that its Second Lien Holders have refused to consent to the use of their cash collateral. As a result, Tweeter closed its remaining stores and terminated its employees on December 1, 2008. Therefore, Tweeter requests that the cases be converted to chapter 7 cases.


What an ***hole.....

As a 30 year industry veteran and former Tweeter employee the demise of the company and the bizarre behavior of George Schultze are sad and facinating (like a car wreck). The real tragedy though is what this represents for the industry. The middle of the market, as represented by the specialist retailer, is quickly disapearing leaving custom installers at the high end and mass market everywhere else. What this means is price and margin erosian, already an epidemic, will accelerate. The entire industry will suffer as a result, manufacturers, distributors, sales reps, retail sales people and the thousands of others that have made their living selling step up products. No margin, no profit, no industry.

Well, the problem with the 401K is going to continue for sometime with the information I was given today. I contacted Fidelity a couple days ago and they gave me a number for a George L. Miller (215)561-0950/(215)680-0780 and said he was the person to contact for questions about this matter. I left Mr. Miller a message and got a call back today saying that the 401K was under liquidation and would be a YEAR or more before we would be able to do anything with these accounts. I just don't get it the money in these accounts was contributed to by us and is our money in my 6 years with Tweeter I have only had 1 contribution from the company and was pennies on the dollar. If anyone else has had any luck with this post a response here. I am seeking another investment manager to get further information and ideas on handling this matter.

I worked for Tweeter for 10 years and left in '07 before the first bankruptcy filing. By the beginning of '07 the hand writing was already on the wall. Too many missteps and bad decisions on executive management drove the nails faster and faster into Tweeters coffin. Sandy Bloomberg as Chairman of the Board and former owner (when they were privately held), should bare allot of the blame. In his position he should have done a better job at steering the ship of the "

I was a manager for the St Petersburg Sound Advice about 7 years ago. I am wondering if anyone has access to an employee list for sound advice employees in Florida, specifically in the tampa bay area. I work for a growing Insurance firm in tampa and we are looking to expand our team. If anyone has any information or names and numbers please forward them to white33707@yahoo.com.

I believe George Schultze underestimated the amount of negative press his behavior has brought to his company. I can't imagine what person would want to do business with such an untrustworthy man. He acted selfishly at the worst time of the year. He is a corrupt individual probably left only to associate with others of his kind. His existence is a sad one.

The real problem is that there are lots of people like George Schultze in the business world today. That is one of the major things wrong with America today. Hopefully, in the end he will get what is coming to him. I am sure that this situation with Tweeter will hurt is company. He had no clue on running a CE retailer. He totally under estimated what it was going to take to turn them around. All he was looking for was to make a quick buck. Sorry George, you lost. Wonder who his next victim will be?

I have a question for Steve Smith, editor-in-chief of Twice. Has your publication directly asked George J. Schultze where the money meant for Service Net, the warranty provider of Tweeter, ended up? Customers paid good money to Tweeter for warranty coverage from August to November, but the portion meant for Service Net was kept by Tweeter. The President of Service Net has publicly stated that Tweeter was instructed to stop selling the warranties in August, but continued to do so until November 10th. Please answer.

I would be willing to bet that the monies that were supposed to go to ServiceNet for the contracts sold went to the life support machines keeping Tweeter alive. Even if Twice did directly ask George Schultze this question he wouldn't give a real or truthful answer. Let's face it, the guy is a crook, cheat and a liar. Since the events of Tweeter closing started this guy has hid in the shadows. Which also shows that he is a chicken and is afraid to speak for himself. George, if that is not true then speak up.

I appreciate the input of Former Employee. I believe that Schultze took such a beating on Wall Street that he sacrificed Tweeter to help pay off his enormous debt to Wells Fargo, the only debt he cared about. I believe he seized every last bit of revenue he legally and illegally could to pay them off, then he went Chapter 7 and ran like a coward. If no one questions or investigates him then he gets away with it. This method of closing down a business will become perfectly acceptable.

I confirmed what HOMED0131MGR said about the 401K with the EBSA, a 401K division at the Dept of Labor. They told me our money is safe but could take up to year before it's resolved by closing the plan and distributing the money. Makes no sense it should take that long, but there you are.

look at the bright side, by the time 401k $ is unfrozen maybe the market will come back ! I only need to have it go up 39.7% to get back to previous value........If we only knew then what we know now, we would have switched it all to the Fidelity money market fund and then taken out a loan for the max 50% of the balance and then waited for Miller and company to give us the rest
sorry, couldnt resist Monday Morning quarterbacking....best wishes to all in 09.

I guess this will be the offical way for ex tweeter employees to comunicate. I worked for Sound Advice for 5yrs. No one can explain to me how they can keep our 401k. Many of us need the money just to survive me being one. Geo. Miller is no help. Any employees with any suggestions can email me at sbeach116@comcast.net

It is truly disgusting what Schultze did to his customers and employees. It's a shame that its only posted on these electronic formats, and not on a more national scale. This is a guy who:
1. intentionally screwed customers out of deposit money and merchandise.
2. sold customers electronics that were in for repair to other customers.
3. left customers homes in disrepair that were having installations done
that happened to fall between the Bk cracks.
4. Intentionally collected warranty money MONTHS before the bk went through and never paid the warranty companies (aka theft).
5. Screwing employees out of bonus monies owned, ignoring WARN acts and tying up 401k money that people might have needed to live after screwing them over.
Apparently all this is within the law according to the brilliant Trustee George Miller who is trying to MAXIMIZE the estate.
He screwed me out of $2,500 of deposit money that I am fighting for. I have sued him personally from the courthouse that the Tweeter store was located in that took my money. I have hounded Attorney generals, the trustee (who is a jerk), consumer advocate websites and anyone who will listen. Still no success. Keep fighting, hopefully this story will get the attention if fully deserves.

And where does everyone think their W-2 Forms will come from for this past year since Tweeter no longer exists? Time to contact the IRS!!!

My best advice about the W-2 form is that if you don't receive one then use the information from your final pay stub from Tweeter. Hopefully all employees held onto it.

www.whartonrestructuringconference.org/panelists.html#Schultze

The link above shows Mr. Schultze is going to be in Philadelphia for a conference of "experts". I work right across the street from this place. I am tempted to stage a small demonstration expressing my displeasure at being ripped off of $2,500.00. If anyone would care to join me, please feel free!

Did anyone attend the Union League gathering on Feb. 27, 2009?

Unfortunately I did not have time to check out the Union League gathering. I did however email the wizards at Wharton who think Schultze is worthy of speaking as an expert about anything. They were as mute as Schultze is. I also emailed the trustee George Miller the other day...there is nothing new to report. Still too early in the process to see if i am going to get my money back. I am still as angry as ever, and the lack of news does not help. Anyone else hear anything further on this thief and the status of the bk?

Anyone notice that Schulzes website, www.samco.net is down?? Not sure if its temporary...maybe someone hacked it like they did to Tweeters site..

Hi, cool post. I have been wondering about this topic,so thanks for writing.

Hi, very nice post. I have been wonder'n bout this issue,so thanks for posting

Hi, interest post. I'll write you later about few questions!

Hi, very nice post. I have been wonder'n bout this issue,so thanks for posting

I have been looking looking around for this kind of information. Will you post some more in future? I'll be grateful if you will.

If I ever meet this jackal Schulze in person, I'd beat him within an inch of his life. Something tells me he will get what's coming to him. He thinks he will get away with this, but he'll get his. If there is a hell, this guy has punched his ticket.