There are at least 12 bidders for Tower Records, an investment banker for the bankrupt music retailer said in court papers filed Tuesday.

The unit of MTS Inc., based in West Sacramento, Calif., filed for Chapter 11 protection in Delaware Aug. 20.

However, the affidavit signed Friday and filed Tuesday by Christopher DiMauro of Houlihan Lokey Howard & Zukin said three prospective purchasers have had face-to-face meetings with Tower Records’ management and conducted due diligence.

DiMauro says he has been in contact with “at least twelve prospective purchasers” that have expressed an interest in participating in the auction, which is set for Oct. 5.

One of the nation’s largest retailers of music, with 89 company-operated stores (it owns only one, leases the rest), Tower Records is due to go before a bankruptcy judge Wednesday to seek approval of bid rules for the sale.

Posted: 09|6|06 at 8:16 am. Filed under: US News.