Due to the recession, Best Buy will be taking more Magnolia stores in-house. Magnolia headquarters and distribution center will be shut down, streamlining operations to Best Buy.  Best Buy headquarters will be closing down 7 Magnolia stores, thereby laying off approximately 184 employees. They say it is a necessary move because Magnolia has been struggling for years plus there is a decline in home theater sales. The 7 stores will be closed by the end of the month.

Magnolia Hi-Fi was acquired by Best Buy during 2000, for $87 million. The name was then changed to Magnolia Audio Video. Magnolia operates most of its stores on the West Coast of the United States. Magnolia carries high-end speaker brands such as Definitive Technology, Monitor Audio, Martin Logan, Vienna Acoustics, and many more.

More information elsewhere:

• Best Buy Taking Magnolia In-House, To Shut 7 Stores (TWICE)
• Best Buy Closes Magnolia Corporate Headquarters, Some Stores (Dealerscope)
• Best Buy Corporate Takes Over Magnolia Leadership (CE Pro)
• Best Buy taking direct control of Magnolia, closing 7 standalone stores (EngadgetHD)
• Magnolia Audio Video to lay off 184 (SeattlePi.com)