Trans World kept 345 of the stores open and closed 55. In March 2006, Trans World Entertainment, which had been acquiring their competitors for several years, announced the purchase of 400 Sam Goody and Suncoast stores. Following the closings, the Sam Goody chain was left with 191 stores. In February 2006, the company announced the closing of 226 Sam Goody and 115 Suncoast Motion Picture Company stores. Under Sun Capital, the company closed more stores and tried to get the business back to basics, but ultimately the challenges of competition and lackluster music industry releases proved too much and in January 2006, The Musicland Group filed for Chapter 11 bankruptcy. In 2002, Best Buy decided to consolidate some of the acquired stores by converting On Cue stores to the Sam Goody brand. Just weeks before Best Buy was prepared to liquidate the entire chain of stores (and after closing several hundred), they found a buyer in Sun Capital Partners, a private equity firm in Boca Raton, Florida, which acquired the chain in a cash-free transaction by acquiring Musicland's liabilities. Losses were exacerbated by a decline in physical CD sales in line with the general decline in CD sales, and by competition from big box retailers. Best Buy's attempt to transform Musicland into a youth-oriented small-format technology hub failed after two years of ownership. Acquisition and demise īest Buy attempted to diversify its retail holdings by purchasing Musicland in 2001, only to sell it two years later. The Licorice Pizza stores were rebranded Sam Goody the following year. In 1986, Sam Goody's corporate parent Musicland purchased the then just recently purchased 34-store Southern California-based Licorice Pizza chain and 26 other record stores for $13 million from Record Bar.
The Musicland Group was once the largest music retailer in the country, operating at its peak more than 1300 stores, over 800 of them Sam Goodys, and earning over $2 billion in annual revenue. The stores averaged 4,600 square feet (430 m 2) but varied in size from 1000 to 30,000 square feet (2,800 m 2). Sam Goody continued to grow through both acquisitions and organic growth, including the launch of its website. In 1978, the company was acquired by the American Can Company (later renamed Primerica), the owners of Minneapolis-based Musicland, Goody's rival.
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