Friday, January 13, 2006

Sam Goody goes Chapter 11

Musicland, Inc., the parent of Sam Goody stores, declared bankruptcy yesterday, according to the St. Paul Pioneer-Press.
Just last month, Musicland said it would close its 61-store Media Play chain; this month it is shuttering 59 Sam Goody and Suncoast stores, leaving it with about 750 locations. Another recent sign of difficulty was CEO Jack Chadsey's departure in December after just two months on the job.
Yes, I think it's safe to say that when a CEO quits after two months, it's a bad sign.

A fixture supplier filed suit yesterday: "Excel Fixtures alleged the company misrepresented its financial condition when Excel took on a large job with Musicland, and said it has not been paid for nearly $800,000 worth of work."

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