Musica is no more. We’ve known is coming for some time. Clicks Group informed investors on Wednesday that it will close the music retailer’s stores countrywide. The music retailer was founded 29 years ago.
The JSE-listed company informed investors that its board has taken a decision to close the group’s heritage entertainment brand Musica with effect from 31 May 2021.
“Musica has closed 19 stores since the start of the 2021 financial year and is
currently trading from 59 outlets,” the company said.
“The remaining stores will be closed as leases expire over the next four months when the majority of leases terminate.”
Acquired by Clicks Group in 1992, Musica has been one of the country’s leading music and entertainment retail brand for several decades.
“Musica has been operating in a declining market for several years owing to the structural shift globally to the digital consumption of music, movies and games from the traditional physical format,” Clicks explains.
“The inevitable demise of the brand has been accelerated by the Covid-19 pandemic which resulted in the rapid decline in foot traffic in destination malls where Musica stores are typically located.”
In the stores which have been closed since September 2020, the Musica staff have been absorbed into the group’s expanding health and beauty store network, the company said.
“Management is committed to accommodating the remaining staff within the group where this is operationally feasible.”
The retailer said that further detail on the financial and operational impact of Musica’s closure will be communicated to shareholders with the release of the group’s interim results in April 2021.