RUMOR MILL
"[We] will focus immediately on the changes necessary to make this com-pany profitable again."
——Musicland Prexy Connie Fuhrman
Monday, June 16, 2003
HERE COMES THE SUN
Best Buy Sells Musicland to Sun Capitol
Best Buy has found a buyer for its troubled Musicland unit. In a memo to her employees, Musicland President Connie Fuhrman announced that Sun Capital Partners Inc. has purchased the chain and effective today will operate as an indirect subsidiary.
Sun Capital is a private investment firm based in Boca Raton, FL. The company has invested in some 50 companies, including Wickes Furniture, Bruegger's Bagels, Miles Kimball and Furniture Warehouse. No dollar amount for the sale was given.
Musicland, which has recently been closing stores to shore up its bottom line, is currently operating some 750 Sam Goody and 75 Media Play locations nationwide. That is down from some 1,300 stores at its peak.
Sun Capital will acquire all operations except for Musicland's Franklin, IN, distribution center, which will remain an asset of Best Buy. Sun will purchase shared-service support from Best Buy for up to one year, or until Musicland has made other arrangements.
Fuhrman will continue on as President, saying in the memo that she "will focus immediately on the changes necessary to make this company profitable again."
Sun Capital is a private investment firm based in Boca Raton, FL. The company has invested in some 50 companies, including Wickes Furniture, Bruegger's Bagels, Miles Kimball and Furniture Warehouse. No dollar amount for the sale was given.
Musicland, which has recently been closing stores to shore up its bottom line, is currently operating some 750 Sam Goody and 75 Media Play locations nationwide. That is down from some 1,300 stores at its peak.
Sun Capital will acquire all operations except for Musicland's Franklin, IN, distribution center, which will remain an asset of Best Buy. Sun will purchase shared-service support from Best Buy for up to one year, or until Musicland has made other arrangements.
Fuhrman will continue on as President, saying in the memo that she "will focus immediately on the changes necessary to make this company profitable again."
