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The Musicland Group, Inc. was an entertainment company that ran Musicland,
Sam Goody Sam Goody was a music and entertainment retailer in the United States and United Kingdom, operated by The Musicland Group, Inc. It was purchased by Best Buy in 2000, sold to Sun Capital Partners in 2003, and filed for bankruptcy in 2006, clo ...
, Discount Records, Suncoast Motion Picture Company, On Cue, and the
Media Play Media Play was a chain of retail stores founded in 1992 by Musicland that sold VHS, DVDs, music, electronics, toys, video games, anime, books, and board games similar to Hastings Entertainment, 2nd and Charles, and Half Price Books. Each store ...
Superstore Chains. The Musicland Group was purchased by Best Buy in 2001 at the height of Musicland's success, which ultimately led to its demise. Jack Eugster was the CEO of The Musicland Group, from 1980, until February 2001. Its headquarters were in
Minnetonka, Minnesota Minnetonka ( ) is a city in Hennepin County, Minnesota, United States. A western suburb of the Twin Cities, Minnetonka is located about west of downtown Minneapolis. As of the 2020 census, the city's population was 53,781. Minnetonka is th ...
.


History

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. In 1964 Musicland merged with JL Marsh and in 1968 with Pickwick International. In 1977,
American Can Company The American Can Company was a manufacturer of tin cans. It was a member of the Tin Can Trust, that controlled a "large percentage of business in the United States in tin cans, containers, and packages of tin." American Can Company ranked 97th amon ...
purchased Pickwick International and in 1978 purchased the
Sam Goody Sam Goody was a music and entertainment retailer in the United States and United Kingdom, operated by The Musicland Group, Inc. It was purchased by Best Buy in 2000, sold to Sun Capital Partners in 2003, and filed for bankruptcy in 2006, clo ...
chain of record stores, which had a long history going back to 1951 in New York. 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 1997, the Musicland Group converted the remaining Musicland stores to the Sam Goody brand. 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. Most of its Sam Goody stores were located in shopping malls. The company helped launch the careers of many prominent artists, including Michael Jackson. In 1986, the first Suncoast Motion Picture Company store was opened as
Paramount Pictures Paramount Pictures Corporation is an American film and television production company, production and Distribution (marketing), distribution company and the main namesake division of Paramount Global (formerly ViacomCBS). It is the fifth-oldes ...
(the name change would come in 1988.) This store concept specialized in movies and movie memorabilia, also located in shopping malls. In 1992, Musicland launched a major initiative with the rollout of its big-box
Media Play Media Play was a chain of retail stores founded in 1992 by Musicland that sold VHS, DVDs, music, electronics, toys, video games, anime, books, and board games similar to Hastings Entertainment, 2nd and Charles, and Half Price Books. Each store ...
concept. Media Play was a chain of retail superstores that sold movies on
video Video is an electronic medium for the recording, copying, playback, broadcasting, and display of moving visual media. Video was first developed for mechanical television systems, which were quickly replaced by cathode-ray tube (CRT) syste ...
,
laserdiscs The LaserDisc (LD) is a home video format and the first commercial optical disc storage medium, initially licensed, sold and marketed as MCA DiscoVision (also known simply as "DiscoVision") in the United States in 1978. Its diameter typical ...
,
music Music is generally defined as the art of arranging sound to create some combination of form, harmony, melody, rhythm or otherwise expressive content. Exact definitions of music vary considerably around the world, though it is an aspect ...
,
electronics The field of electronics is a branch of physics and electrical engineering that deals with the emission, behaviour and effects of electrons using electronic devices. Electronics uses active devices to control electron flow by amplification ...
,
video game Video games, also known as computer games, are electronic games that involves interaction with a user interface or input device such as a joystick, controller, keyboard, or motion sensing device to generate visual feedback. This fee ...
s,
book A book is a medium for recording information in the form of writing or images, typically composed of many pages (made of papyrus, parchment, vellum, or paper) bound together and protected by a cover. The technical term for this physical arr ...
s,
toy A toy or plaything is an object that is used primarily to provide entertainment. Simple examples include toy blocks, board games, and dolls. Toys are often designed for use by children, although many are designed specifically for adults and pet ...
s, and
game A game is a structured form of play (activity), play, usually undertaken for enjoyment, entertainment or fun, and sometimes used as an educational tool. Many games are also considered to be work (such as professional players of spectator s ...
s in the
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territorie ...
. Each store essentially contained a book store, a movie store, a music store, and a video game store under one roof. At their height, they operated 72 stores in 19 states with 2,000 employees. The first store opened in
Rockford, Illinois Rockford is a city in Winnebago County, Illinois, located in the far northern part of the state. Situated on the banks of the Rock River, Rockford is the county seat of Winnebago County (a small portion of the city is located in Ogle County). ...
, in 1992. Hundreds of stores were slated to be opened, but only 89 ever were. Mostly freestanding, the stores averaged a massive in metropolitan areas. During the same period, the company also developed a small market Media Play by opening On Cue stores across the country as well. 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. In 2001, The Musicland Group Inc. was purchased by Best Buy inc. as part of its initiative to diversify its retail holdings to reach a larger demographic with its consumer electronics and entertainment products. By then, Musicland numbered over 1300 stores. Their intention was to transform Sam Goody into a destination for young people looking for hip electronics. They launched a major remerchandising campaign and converted Musicland's On Cue concept of rural stores to the Sam Goody brand,"On Cue Rebranding As Sam Goody"
'' Billboard'', April 13, 2002, Page 63. reducing its position in books and moving more into video games and DVD. Many Musicland employees, particularly management, were not happy at all with the Best Buy acquisition or their business model and tactics. As part of a 2002 settlement with 41 states over
CD price fixing Between 1995 and 2000 music companies were found to have used illegal marketing agreements such as minimum advertised pricing to artificially inflate prices of compact discs in order to end price wars by discounters such as Best Buy and Target in ...
Musicland, along with retailers
Tower Records Tower Records is an international retail franchise and online music store that was formerly based in Sacramento, California, United States. From 1960 until 2006, Tower operated retail stores in the United States, which closed when Tower Records ...
and
Trans World Entertainment Kaspien Holdings, Inc. (formerly Trans World Entertainment) is an American company that provides software and services for ecommerce. Kaspien Holdings operates on Amazon in the United States, Canada, United Kingdom, Spain, France, Italy, Germany ...
, agreed to pay a $3 million fine. It is estimated that between 1995 and 2000 customers were overcharged by nearly $500 million and up to $5 per album.


Downfall

Best Buy failed to generate the results they were looking for with Musicland, losing $85 million in 2002. 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. 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 Sun Capital Partners, Inc., is an American private equity firm specializing in leveraged buyouts. Sun Capital was founded in 1995 by Marc J. Leder and Rodger Krouse, former classmates at the Wharton School of the University of Pennsylvania and ...
of Boca Raton, Florida. Sun Capital acquired the company in a cash-free transaction in exchange for acquiring Musicland's debt and leases. Sun Capital attempted to get the company back to basics, but ultimately the dual pressure of internet downloading and big box competition proved too much and in December 2005 Sun Capital announced the closure of all remaining Media Play stores. The now Sun Capital owned Musicland Group filed for Chapter 11 bankruptcy in January 2006, and in February announced the closin

of 226 Sam Goody and 115 Suncoast Motion Picture Company stores, and all
Media Play Media Play was a chain of retail stores founded in 1992 by Musicland that sold VHS, DVDs, music, electronics, toys, video games, anime, books, and board games similar to Hastings Entertainment, 2nd and Charles, and Half Price Books. Each store ...
locations. In March 2006,
Trans World Entertainment Kaspien Holdings, Inc. (formerly Trans World Entertainment) is an American company that provides software and services for ecommerce. Kaspien Holdings operates on Amazon in the United States, Canada, United Kingdom, Spain, France, Italy, Germany ...
announced the purchase of Musicland's remaining 400 Sam Goody and Suncoast stores from Sun Capital, along with their websites. Trans World kept 345 of those stores open and closed 55. Transworld began converting the remaining Sam Goody mall stores to FYE, their signature retail brand, but chose to keep the Suncoast Motion Picture Co. name on about 170 stores


Recent years

More than 100 Sam Goody stores remained in operation as of January 2007, but as a result of a disappointing fourth quarter and full year 2006 for Transworld Entertainment, chief executive Robert Higgins announced in their fourth quarter earnings conference call that many of those remaining Sam Goody stores would be facing closure. In late 2006, Transworld started converting Sam Goody stores to FYE stores.


In Popular Culture

A Musicland store was one of the various stores reconstructed for the set of
R. L. Stine Robert Lawrence Stine (; born October 8, 1943), sometimes known as Jovial Bob Stine and Eric Affabee, is an American novelist, short story writer, television producer, screenwriter, and executive editor. Stine has been referred to as the "St ...
's ''
Fear Street ''Fear Street'' is a teenage horror fiction series written by American author R. L. Stine, starting in 1989. In 1995, a series of books inspired by the ''Fear Street'' series, called '' Ghosts of Fear Street'', was created for younger readers ...
'' at the
North DeKalb Mall North DeKalb Mall is an enclosed shopping mall located in unincorporated DeKalb County, near Decatur, a suburb of Atlanta, Georgia, United States. Opened in 1965, the center currently comprises more than eighty-five stores on one level. Anchor s ...
in Atlanta, Georgia.


References


External links


Suncoast websiteSam Goody website
now redirect t
FYE websiteTransworld Entertainment company website
{{authority control Best Buy Defunct retail companies of the United States Defunct companies based in Minnesota Music retailers of the United States Companies that filed for Chapter 11 bankruptcy in 2006