What type of flooring does the closet have? Your problem may not be with the cedar, but with whatever is on the floor. Usually sanding cedar every few years renews the "cedar" scent.
Also, has your house ever been flooded? There may be something behind the cedar, like mold, that is causing the smell.

We have carpet in the closet and yes we had some flooding in the basement 7 years ago but not near this side of the house (and all carpet was replaced and the basement was treated by Servpro). I just opened the door (first time in 4 days) and it smells so much better...like cedar! Maybe it just needed a few days? I'm hoping that other stale-old-hamper-clothes-odor won't return. Thanks for your response.