My closet has a musty smell and I cannot get rid of it?

I recently bought a very old house. The walls in my closet are plaster. We will re-do the closet soon, but in the meantime, there is a very musty old smell in there. I have tried fabric softener sheets, and potpurri bags. Nothing seems to get rid of the smell and even my clothes smell like a damp basement! How do I get rid of the smell? Should I use cedar? Does that make your clothes smell bad? What do you suggest?

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