Today, Best Buy announced the sale of its Musicland chain to private investment firm Sun Capital Partners. The sale has surprised many pundits, who expected Best Buy would face an uphill battle in unloading the division, which saw sales decline 8.7 percent to $1.7 billion in 2003.
Best Buy will receive no cash for the Musicland assets, which include 1,173 Media Play, Sam Goody and Suncoast stores. But San Capital will acquire the liabilities on almost all the assets, including lease obligations. On a conference call Wednesday, Best Buy is expected to reveal more details of the transaction.