Tweeter will file for bankruptcy if it cannot meet its debt andequity needs and isn't able to reach settlements with landlordswhere the stores it is closing are located. So far, management hasreached agreements with one third of the landlords of the shutstores.

Thus far, management does not foresee additional store closings,even if Tweeter does file for bankruptcy. The company has closedsix locations so far and management looks to close two more thismonth. "We're pretty pleased with the way the existing storeclosings are going," says Joe McGuire, the company's president andchief executive officer.

The store closures are leading to the exit of California,Tennessee, Alabama, New York, and parts of Georgia. For the secondquarter, which ended March 31, Tweeter took a write-down of $25.4million due to costs related to the shutting of units.