Music, video chain sold

Monday, June 16, 2003 | 9:50 a.m.

MINNEAPOLIS -- Best Buy Co., the largest U.S. electronics retailer, today said it sold its unprofitable Musicland music and video chain to a unit of closely held investment firm Sun Capital Partners Inc. for the assumption of liabilities.

No cash was involved in the transaction. Sun Capital assumed all the liabilities of the operator of 1,100 Sam Goody, Suncoast and Media Play stores, said Lisa Hawks, a Best Buy spokeswoman. The liabilities will be disclosed when Best Buy releases quarterly results on Wednesday, she said.

Best Buy struggled to expand Musicland's offerings beyond CDs and videos after buying the chain for $685 million in 2001 and sales had been below expectations because of slowing music sales. Best Buy blamed a decline in fourth-quarter profit on a $67 million loss at the Musicland business.

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