Sam Ash files for bankruptcy; may sell e-commerce ops, IP, wholesale business
After 100 years in the music business, Sam Ash is going dark — at least in brick-and-mortar.
The iconic retailer filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of New Jersey. Tiger Group and Gordon Brothers are now conducting store closing sales at Sam Ash's 42 remaining stores as it pursues options for its go-forward strategy.
The company said it is evaluating potentially selling its e-commerce operations and related intellectual property as well as its wholesale business called "Samson" in the bankruptcy proceedings.
"Launched by my grandparents in 1924, Sam Ash is one of the best-known and most iconic brands in the history of U.S. musical instrument retailing, with an online presence and sales that remain incredibly strong," said David Ash, CEO of the privately-owned, New York-based retailer. "Unfortunately, in today's post-COVID environment, the challenges to our brick-and-mortar business have necessitated a restructuring.”
Ash said the company is exploring a number of strategic options in conjunction with its store closing sales.
“We believe that a restructuring of our liabilities and a potential sale of the business or portions of the business is the best path forward to unlock and maximize value for the benefit of the company's stakeholders,” he added. “Stay tuned."
Sam Ash's stores are located in 16 states. The states include Arizona, California, Connecticut, Florida, Georgia, Illinois, Indiana, North Carolina, New Jersey, Nevada, New York, Ohio, Pennsylvania, Tennessee, Texas and Virginia.
"Sam Ash offers a huge array of new and used gear from the best-known brands in music," stated Tiger Group COO Michael McGrail. "All within the same store, you could find a $9,000 spruce-and-cocobolo Martin guitar fit for a Nashville pro, or a $200, entry-level Fender bass that is perfect for someone just starting out. This is the kind of inventory that
The inventory is comprised of guitars, amps, effects, pianos, drums, cymbals, keyboards, microphones, professional sound and recording equipment, sheet music, band and orchestra instruments, and more.
Immigrant violinist Sam Ash and his wife Rose launched the first store in Brooklyn in 1924. Their sons, Jerry Ash and Paul Ash, veterans of WWII and Korea, respectively, began the growth of the business that continued over subsequent generations. Four generations of the family, most recently Sam and Rose's great-grandchildren, have played an active role in the iconic business.
The full store list is available at https://www.samash.com/store-locator.