Agreed to pay $104 million for 400 stores.
Trans World has agreed to pay $104 million to purchase 400 stores from Musicland, which has been operating under Chapter 11 protection since Jan. 12.
In making the bid Trans World becomes a “stalking horse,” which under the bankrupcty court ruling now requires other bidders to best Trans World’s offer by $3 million. If someone emerges with such a bid, then the assets are put up for auction between the bidders.
If the Trans World bid is successful, the company plans to shutter 55 of the stores and will operate the remaining 345, which will boost the chain's total to 1,150 stores.
The Trans World bid all but assures the complete liquidation of Musicland. The Minnetonka-based company continues to liquidate another 345 stores in a move already approved by the Southern District Federal Bankrupcy Court in New York. Moreover, the chain has already completed the liquidation of 61 Media Play. In that earlier action, Trans World already acquired six of the Media Play leases.