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canopic jug writes:

The late Russ Solomon radically changed retail music until the arrival of digital music players, streaming, online retailers, and late-stage big box stores all combined to cut deeply into the market. Now he, like music stores in general, has passed on:

A pioneer who was admired by employees and competitors alike, Solomon made Tower a $1 billion-a-year business stretching from Boston to Bogota, Colombia, with major outposts in Tokyo and London. He operated on a philosophy that was obvious to him but extraordinary for its day: Build big stores and pack them with as much music as possible. The company eventually branched into books and video.

The Rolling Stone also had this quote from a 2015 documentary on Solomon and his stores:

"You find the people that get their shit together, who get the job done, regardless of how much fun they have — and you leave 'em alone," Hanks told Rolling Stone of Tower Records' laissez-faire management style. "It's pretty dangerous, but it works for the era and for the music business. Russ kept finding himself in the right place, at the right time, with the right attitude."

Over-expansion played a large role in the stores going under.

Sources :
Founder of Tower Records dies at 92 while drinking whiskey and watching the Oscars. The Sacramento Bee.
Tower Records Founder Russ Solomon Dead at 92. Rolling Stone.

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