Musicland Group Inc. confirmed Monday that it is closing its Media Play stores, including five in Utah, by late January.
Musicland spokeswoman Laurie Bauer confirmed the closures and told the Deseret Morning News that its Media Play chain, which includes 61 stores in 18 states, "has not been profitable for years."
"The team has worked extremely hard to turn it around without success," Bauer said. "Finding the niche for Media Play has been difficult. The store has been impacted by negative industry trends, particularly in music and movies, by competition both from big box and discount, as well as online."
Media Play's concept blended entertainment media components — books, movies, music, consumer electronics, and related merchandise — in a big-box format. The Midvale, Salt Lake City/Redwood Road, Brickyard Plaza, Riverdale and Orem locations are affected in Utah. About 150 full- and part-time employees will be affected by the closures in the state.
Bauer said Media Play is notifying customers of the closures via radio and television advertising and direct mail to members of its customer loyalty program, Replay. Media Play began a markdown sale on Sunday, Bauer said, and all sales are now final. The company will accept return/exchanges only until Friday for purchases made prior to Sunday, Bauer said.
Replay members can continue to earn and redeem points online, or at Musicland's other chains, Sam Goody and Suncoast. As of Sunday, Media Play stopped selling gift cards. Previously purchased cards can be redeemed until the stores close in January at Media Play stores, or may be redeemed at Sam Goody, Suncoast and online, Bauer said.
Musicland Group operates two Sam Goody stores and one Suncoast in Utah, out of a total of 800 across the country, Bauer said.
"We will focus on growing these businesses," she said, including a redesign of the Sam Goody chain.
Sun Capital Partners Inc., a private investment firm based in Florida, took Musicland off the hands of Best Buy Inc. in 2003 — two years after Best Buy paid nearly $700 million for the group. Sun Capital Partners paid no cash but assumed all of Musicland's liabilities.
Media Play, which opened in 1992, has 2,000 employees.
Contributing: Associated Press
E-mail: jnii@desnews.com