Sun Capital acquired the company in a cash-free transaction in exchange for acquiring Musicland's debt and leases. As a result, they put the company up for sale and were likely just weeks away from liquidating the entire chain when they found a buyer in Sun Capital Partners of Boca Raton, Florida. Best Buy admitted mall based retail was a different business concept from their Best Buy stores, and that they had failed at properly running The Musicland Group. Downfall īest Buy failed to generate the results they were looking for with Musicland, losing $85 million in 2002. It is estimated that between 19 customers were overcharged by nearly $500 million and up to $5 per album. Many Musicland employees, particularly management, were not happy at all with the Best Buy acquisition or their business model and tactics.Īs part of a 2002 settlement with 41 states over CD price fixing Musicland, along with retailers Tower Records and Trans World Entertainment, agreed to pay a $3 million fine. They launched a major remerchandising campaign and converted Musicland's On Cue concept of rural stores to the Sam Goody brand, reducing its position in books and moving more into video games and DVD. Their intention was to transform Sam Goody into a destination for young people looking for hip electronics. By then, Musicland numbered over 1300 stores. as part of its initiative to diversify its retail holdings to reach a larger demographic with its consumer electronics and entertainment products. These "small town Media Plays" also sold Music, Books and Movies, as well as musical instruments and gave small towns that were not near a major metro a place for great selection.
During the same period, the company also developed a small market Media Play by opening On Cue stores across the country as well. Mostly freestanding, the stores averaged a massive 45,000 square feet (4,200 m 2) in metropolitan areas. Hundreds of stores were slated to be opened, but only 89 ever were. The first store opened in Rockford, Illinois, in 1992. At their height, they operated 72 stores in 19 states with 2,000 employees.
#SUNCOAST MOTION PICTURE COMPANY MOVIE#
Each store essentially contained a book store, a movie store, a music store, and a video game store under one roof. Media Play was a chain of retail superstores that sold movies on video, laserdiscs, music, electronics, video games, books, toys, and games in the United States. In 1992, Musicland launched a major initiative with the rollout of its big-box Media Play concept. In 1986, the first Suncoast Motion Picture Company store was opened as Paramount Pictures (the name change would come in 1988.) This store concept specialized in movies and movie memorabilia, also located in shopping malls. The company helped launch the careers of many prominent artists, including Michael Jackson. Most of its Sam Goody stores were located in shopping malls. The company expanded rapidly during the mall boom of the 1980s and continued to grow into the nineties, enjoying a long tenure as the United States' largest specialty retailer of entertainment products. In 1997, the Musicland Group converted the remaining Musicland stores to the Sam Goody brand. Shortly after, Musicland began converting the majority of its stores to the Sam Goody brand name, although some locations did retain the Musicland name into the early 2000s. In 1977, American Can Company purchased Pickwick International and in 1978 purchased the Sam Goody chain of record stores, which had a long history going back to 1951 in New York. In 1964 Musicland merged with JL Marsh and in 1968 with Pickwick International. The first Musicland store was opened in 1955 in Minneapolis by Grover Cleveland Sayre II, where the company continued to be headquartered for the remainder of its history, by Heilicher Brothers, a Minneapolis-based regional record distributor and owner of the Soma Records label. Its headquarters were in Minnetonka, Minnesota. Jack Eugster was the CEO of The Musicland Group, from 1980, until February 2001. The Musicland Group was purchased by Best Buy in 2001 at the height of Musicland's success, which ultimately led to its demise.
was an entertainment company that ran Musicland, Sam Goody, Discount Records, Suncoast Motion Picture Company, On Cue, and the Media Play Superstore Chains.
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