Sun Capital Partners will make a $25 million equity investment in the Musicland Group, according to sources.
NEW YORK -- Sun Capital Partners will make a $25 million equity investment in the Musicland Group, according to sources.
The cash infusion will mark the first time the Boca Raton, Fla.-based investment firm has put equity into Musicland since it acquired the chain from Best Buy by assuming its obligations in June 2003.
The funds will be used to finance growth initiatives, including opening new store prototypes and improving existing outlets, according to sources familiar with the situation. The improvements will include remerchandising, replacing fixtures, enhancing in-store technology and diversifying product offerings.
A source says Musicland doesn't need the Sun investment but wants to make sure the chain's expansion plans don't tax its liquidity.
"The funding will allow the chain to accelerate in-store and out-of-store efforts to drive sales," says the source.
Musicland declined to comment.