| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers M > Headlines for Musicland Holding Corp. > News item |
Musicland granted court approval of $104.2 million asset sale to Trans World Entertainment
By Caroline Salls
Pittsburgh, March 22 - Musicland Holding Corp. obtained court approval of the $104.2 million sale of substantially all of its assets to Trans World Entertainment Corp., according to a company news release.
In addition to the $104.2 million cash purchase price, the transaction includes $18.1 million in assumed liabilities.
Trans World Entertainment has partnered with a joint venture comprised of Hilco Merchant Resources LLP and Gordon Brothers Retail Partners, LLC for an arrangement by which Hilco and Gordon Bros. will conduct inventory liquidation sales at some of the company's stores.
The transaction is scheduled to close on March 27.
"We are pleased that the bankruptcy court has approved our purchase of Musicland's assets and look forward to quickly and efficiently integrating the acquired stores into the Trans World chain," TransWorld chairman and chief executive officer Robert J. Higgins said in the release.
"This acquisition will increase our national footprint providing important operational and marketing synergies and we believe the acquisition will be accretive to our 2006 results.
"We also expect to leverage Musicland's investments in its Replay customer loyalty program that has become a model in customer relationship management for its millions of Replay members across the country," Higgins added in the release.
Trans World said it expects to retain 335 of Musicland's best performing stores and liquidate the remaining 65 stores.
Musicland, a Minnetonka, Minn., specialty retailer of prerecorded entertainment software products, filed for bankruptcy on Jan. 12 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 06-10064.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.