Book sales soar at struggling Musicland; but rapid expansion last year 'strained our operational capabilities.' (Media Play and On Cue stores; Musicland loses $1.35 million in 1995)(Brief Article)

But rapid expansion last year 'strained our operational capabilities'

DESPITE FINANCIAL problems and uncertainties surrounding Musicland's future, the company's Media Flay and On Cue outlets sold $106.6 million worth of books in 1995, compared to $56.5 million in 1994. In 1993, the two chains sold $15 million worth of books.

In its recently released annual report, Musicland executives conceded that their company's rapid expansion, primarily in the Media Play and On Cue divisions, "strained our operational capabilities." As a result the company announced earlier this year that it is dramatically reducing the rate of expansion of Media Play and On Cue to about 10 …