Sam Ash files for bankruptcy after 100 years in music business


Sam Ash, a 100-year-old music instrument retailer, filed for Chapter 11 bankruptcy late Wednesday, saying it supposed to close all of its 42 stores in the US.

The family-owned firm had confronted declining gross sales ever because the COVID-19 pandemic, which accelerated a long-term shift towards on-line looking for musical devices, Sam Ash chief restructuring officer Jordan Meyers stated in courtroom paperwork.

Sam Ash “has been closely depending on in-store site visitors, which was eradicated throughout the pandemic and has materially declined lately,” Meyers wrote.

The family-owned firm had confronted declining gross sales ever because the COVID-19 pandemic. Alexander Lewis/MyCentralJersey.com / USA TODAY NETWORK

The retailer entered chapter owing about $20 million to its major lender Tiger Finance, and it has $20 million in unpaid money owed to landlords and musical instrument suppliers together with keyboard producer Yamaha Corp and guitar makers Gibson and Fender.

Sam Ash had problem paying landlords and distributors in April, disrupting its stock provide and inflicting the corporate to be locked out of considered one of its shops, in keeping with its courtroom filings.

Tiger Finance has supplied to purchase Sam Ash’s present stock, mental property and different property, whereas offering as much as $20 million to fund Sam Ash’s chapter, in keeping with courtroom paperwork.

Sam Ash will pursue higher affords for its enterprise, however any purchaser will possible require the corporate to shut some or all of its shops, the corporate stated.

Sam Ash’s brick-and-mortar retail shops earned $145 million of income in 2023, whereas its on-line gross sales of musical devices generated $42 million.

These numbers had been sharply under its pre-pandemic gross sales, the corporate stated.


Guitars on display
Sam Ash had problem paying landlords and distributors in April, disrupting its stock provide and inflicting the corporate to be locked out of considered one of its shops, in keeping with its courtroom filings. Common Photos Group through Getty Photos

The Hicksville, New York-based firm has 830 workers.

Its shops are unfold throughout 11 states, together with Florida, California and New York.

The biggest US music retailer, Guitar Heart, filed for Chapter 11 in 2020 to finish a restructuring that eradicated $800 million in debt.


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