Trans World Completes Musicland Purchase, Buys Recordable Kiosks30 Mar, 2006 By: Jessica Wolf
Trans World March 29 announced the company has finalized its acquisition of Musicland Holdings Corp., which includes video retailers Sam Goody and Suncoast Motion Picture Company.
Musicland filed for bankruptcy in January.
Along with the acquisition completion, Trans World upped its revolving secured credit facility from $100 million to $130 million with Bank of America Trans World put up $104.2 million in cash and took on $18.1 million in assumed liabilities in the deal for Musicland.
Trans World Entertainment operates more than 1,100 retail stores in the United States, the District of Columbia, the U.S. Virgin Islands, Puerto Rico and e-commerce sites.
In addition to its mall locations, operated under the f.y.e., Sam Goody and Suncoast brands, the company also operates freestanding locations under the names Coconuts Music and Movies, Strawberries Music, Wherehouse, Sam Goody, On Cue, CD World, Spec's, Second Spin and Planet Music.
Separately, Trans World announced March 30 it has acquired controlling interest in digital kiosk company Mix & Burn LLC.
Mix & Burn allows shoppers to search a digital catalog and burn their own CDs in the store, even make their own compilations. The company also plans to expand offerings to download tracks through USB ports to portable video/audio players and cell phones.
Mix & Burn and its fellows in the kiosk industry were a hot topic at last summer's National Association of Recording Merchandisers convention in San Diego.
A special NARM task force met with record labels in advance of the show to come up with a laundry list of ideas on how to incorporate digital sales into the physical product mix, like offering special discounts for a digital and physical in store purchase, or offering free downloads of breaking bands, coupons for in store use, live concert tracks and more.
"In the near future, Mix & Burn will become a feature of the 'Download Zone' section of our stores as we continue to transform the store to be a source of digital as well as physical entertainment content,” said Jim Litwak, President and COO of Trans World.