Musicland Files Chapter 11

“Musicland Holding Corp., among the nation’s most prominent music retailers, filed for bankruptcy reorganization after years of losses and relentless competition from superstores such as Circuit City and its onetime owner Best Buy.” Musicland operates Sam Goody, Media Play, and Suncoast Movie stores across the country. “Musicland’s woes began a decade ago, as its mall stores saw its customers siphoned away by the rapid growth of big-box retailers where prices on music and movie releases often are $3 to $4 cheaper. The advent of downloading songs from the Internet further pressured in-store sales.”