Musicland Confirms It Will Shutter 141 Sam Goody Stores25 Nov, 2003 By: Erik Gruenwedel
A Musicland Group spokesperson has confirmed that it is shuttering 141 Sam Goody music and video stores by the end of the year, as well as nine Suncoast video retailers. The closures primarily affect mall locations.
Minneapolis-based Musicland, which owns Goody, Suncoast and Media Play, will continue to operate about 500 Goody locations, according to spokesperson Laurie Bauers.
“We are closing unprofitable locations,” Bauers said.
She said the closures were more about underperforming malls, exorbitant rents and nonprofitability than a music industry under siege from illegal downloads and indifferent customers.
“You can't say music isn't performing well, without [factoring in piracy],” Bauers said. “But for us, it's more about location. In mall retail, you tend to turn your stores over quickly, but we didn't do that fast enough in the past. That's part of the new management's plan: a return to profitability.”
Last summer, Sun Capital Partners, a Boca Raton, Fla.-based investment firm, acquired controlling interest in Musicland for an undisclosed amount. In August, it secured a $200 million line of credit for Musicland, and in September, Musicland named former Trans World Entertainment president and COO Michael Madden president.
The company plans to open 50 Suncoast locations in 2004, according to Bauers.