(CelebrityAccess MediaWire) — A U.S. Bankruptcy Court in New York approved Trans World Entertainment’s acquisition of 400 Musicland stores; a deal that is expected to close by March 27th.
As soon as Trans World assumes ownership, the company will turn over 65 stores to liquidation firm Hilco Merchant Resources, who will conduct going-out-of-business sales at each location. Trans World will be left with 335 of Musicland’s stores, which, Transworld chairman/CEO Bob Higgins told Billboard will be split between Suncoast video outlets and Sam Goody stores.
Trans World and Hilco Merchant Resources are paying $104 million for the Musicland stores. When the deal was first signed in mid-February, the stores had a total inventory valued at about $168-million. Trans World has said it will use cash and bank debt to pay for the stores.
Trans World is also assuming $18 million in Musicland liabilities, and will pick up Musicland’s online stores as part of the transaction. Earlier in the bankruptcy proceedings, Trans World agreed to buy six Media Play stores.
At the close of the deal, New York-based Trans World will operate a total of about 1,125 stores. The company is expected to post sales of $1.6 billion in its current fiscal year. –by CelebrityAccess Staff Writers