American music retailer Sam Ash filed for Chapter 11 bankruptcy protection on 8 May 2024 and intends to close all its 42 stores in the US.
The retailer filed for bankruptcy in the US Bankruptcy Court for the District of New Jersey.
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Sam Ash is exploring the potential divestiture of its e-commerce business and related intellectual property as well as its wholesale operations.
The retailer is currently indebted to Tiger Finance for $20m and owes an additional $20m to landlords and musical instrument suppliers such as Yamaha, Gibson and Fender.
In response to the financial challenges, Tiger Group and Gordon Brothers are overseeing closure sales in all 42 Sam Ash stores.
The company’s physical stores generated $145m in revenue in 2023, while its online sales amounted to $42m, the New York Post has reported.
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By GlobalDataSam Ash CEO David Ash said: “Unfortunately, in today’s post-Covid environment, the challenges to our bricks-and-mortar business have necessitated a restructuring. We are exploring a number of strategic options in conjunction with these inventory 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 maximise value for the benefit of the company’s stakeholders.”
The company’s stores are located in states including Arizona, Connecticut, California, Georgia and Florida.
Its inventory clearance includes musical instruments and equipment from major brands such Yamaha, Gibson, Taylor, Martin Takamine and Ibanez.
Tiger Group chief operating officer Michael McGrail said: “Sam Ash offers a huge array of new and used gear from the best-known brands in music. This is the kind of inventory that rarely, if ever, is available in a blowout sale. It’s an extraordinary event.”
