Sunrise Records Entertainment is buying Trans World Entertainment’s FYE retail stores for $10 million as Trans World shifts focus to its etailz e-commerce business. The sale of the 200 stores marks a major change for Trans World, which once had more than 1,000 locations under the Sam Goody, Strawberry’s, Suncoast Motion Picture Co. and other brands.

The sale caps a months long review of “strategic alternatives” for the stores, which in recent years have have shifted emphasis toward licensed collectibles and away from the music and video that were once its hallmarks. The deal is expected to close in Q1. Trans World launched the FYE format in 1993 and gradually converted all of its stores to that banner. Trans World bought eTailz for $75 million in 2016.

Canada-based Sunrise Records, founded in 1977, emerged from bankruptcy three years ago and bought the leases of 70 former HMV Canada locations. It later also acquired HMV Canada’s parent, UK-based HMV Retail, from Hilco for $1.1 million and shifted merchandise strategies in the UK to focus on pop culture merchandise and vinyl records.

Trans World will continue to operate its business in the ordinary course until the Transaction closes, and thereafter Sunrise anticipates keeping substantially all of the current FYE employees. Following the closing, the Company plans to focus on the operation of its wholly owned subsidiary, etailz, Inc.

Contacts:

Trans World Entertainment

Ed Sapienza

Chief Financial Officer

518-452-1242