Auditors concerned about Musicland's future; company's book sales were $12.6m. in '96, mostly in declining Media Play stores.(Brief Article)

Company's book sales were $126m. in '96, mostly in declining Media Play stores

IN MUSICLAND'S 10-K report filed with the Securities and Exchange Commission earlier this month, the company's auditors, Arthur Andersen, noted that declining operating results and liquidity constraints "raise substantial doubt about its ability to continue as a going concern."

Confronted by continuing losses, including a net loss of $193 million in 1996 (News, Mar. 10), Musicland previously had been granted an extension on its credit line by its banks until May 29. Musicland is in negotiations with its bank group to amend the credit agreement to provide additional flexibility in …