Musicland has been closing its 61 Media Plays since December, and executives expect to finish that process by the end of the month. As part of a Chapter 11 reorganization, they will also consider shutting a portion of its 425-unit Sam Goody music chain or some of the 324-unit Suncoast movie stores, though no definite plans have been released.

Musicland executives say they have received commitments for up to $75 million in debtor-in-possession financing from a bank group led by Wachovia. The company plans to normally pay its vendors and is asking the US Bankruptcy Court for the Southern District of New York, where it filed for bankruptcy, for permission to honor customer gift cards and loyalty programs.

Musicland was acquired from Best Buy by Boca Raton, FL-based private equity Sun Capital Partners in the summer of 2003. Earlier that year Best Buy had closed 110 of the group's units. Best Buy originally purchased the music retailer in 2000 for $441 million.

Sun Capital has been a big acquirer of retail companies in recent years. In December it acquired discounter ShopKo and its 255 stores for just under $880 million. It and Lupert-Adler Partners are partial owners of the 250-store Mervyns chain, which they acquired in 2004 with Cerebus Capital Management and Klaff Partners. Besides Mervyns, Sun Capital has stakes in the 250-restaurant Bruegger's Bagels, as well as the 69-unit Rag Shops.