Sam Ash is a 100-year-old musical instrument retailer. filed for Chapter 11 bankruptcy The company announced late Wednesday that it intends to close all 42 stores in the United States.
Jordan Myers, Sam Ash’s chief restructuring officer, said in court documents that the family-owned company has faced declining sales since the COVID-19 pandemic, which has led to a shift toward online shopping for musical instruments. He said the long-term transition has accelerated.
Sam Ash “has relied heavily on in-store foot traffic, which disappeared during the pandemic and has decreased significantly in recent years,” Myers wrote.
The retailer went into bankruptcy with about $20 million owed to its main lender, Tiger Finance, and $20 million in unpaid debts to its landlords and musical instrument suppliers, including keyboard maker Yamaha and guitar makers Gibson and Fender. have debts.
According to court filings, Sam Ash was forced out of one of its stores in April due to difficulties paying landlords and vendors, disrupting inventory supply.
According to court documents, Tiger Finance offered to purchase Sam Ashe’s existing inventory, intellectual property and other assets while providing up to $20 million in bankruptcy funds.
Sam Ash will pursue a better offer for the business, but the buyer will likely require the company to close some or all of its stores, the company said.
Sam Ash’s physical stores generated $145 million in revenue in 2023, and online sales of musical instruments generated $42 million.
The company says these numbers are significantly lower than pre-pandemic sales.
The Hicksville, NY-based company has 830 employees.
Stores are spread across 11 states, including Florida, California and New York.
Guitar Center, the largest music retailer in the United States, filed for Chapter 11 protection in 2020 in an effort to complete a restructuring that would eliminate $800 million in debt.
