The receivers and components will appear later this year in Magnolia Home Theater stores within Best Buy stores, but not in Best Buy's aisles.
As of March 1, the Best Buy division operated 353 Magnolia Home Theater shops within Best Buy stores and six freestanding Magnolia Audio Video stores, with one more due this year in Chicago. Magnolia's product assortment is different than that of Best Buy stores.
"We have worked diligently to position the brand where the product's performance, capabilities, feature set and uncompromising build quality can be effectively and professionally demonstrated," Onkyo sales director Keith Haas said.
The distribution agreement follows the demise of Circuit City, where Onkyo was previously carried. This is the first time Onkyo has been carried by a Best Buy division in almost two decades, due to a dispute over changes in the retailer's store format.