Sam Ash files for Chapter 11 bankruptcy after 100 years in music business

Sam Ash, a 100-year-old euphony instrument retailer, filed for Chapter 11 bankruptcy precocious Wednesday, saying it intended to close each of its 42 stores successful nan US.

The family-owned institution had faced declining income ever since nan COVID-19 pandemic, which accelerated a semipermanent displacement toward online shopping for philharmonic instruments, Sam Ash main restructuring serviceman Jordan Meyers said successful tribunal documents.

Sam Ash “has been heavy limited connected in-store traffic, which was eliminated during nan pandemic and has materially declined successful caller years,” Meyers wrote.

The family-owned institution had faced declining income ever since nan COVID-19 pandemic. Alexander Lewis/MyCentralJersey.com / USA TODAY NETWORK

The retailer entered bankruptcy owing astir $20 cardinal to its superior lender Tiger Finance, and it has $20 cardinal successful unpaid debts to landlords and philharmonic instrumentality suppliers including keyboard shaper Yamaha Corp and guitar makers Gibson and Fender.

Sam Ash had trouble paying landlords and vendors successful April, disrupting its inventory proviso and causing nan institution to beryllium locked retired of 1 of its stores, according to its tribunal filings.

Tiger Finance has offered to bargain Sam Ash’s existing inventory, intelligence spot and different assets, while providing up to $20 cardinal to money Sam Ash’s bankruptcy, according to tribunal documents.

Sam Ash will prosecute amended offers for its business, but immoderate purchaser will apt require nan institution to adjacent immoderate aliases each of its stores, nan institution said.

Sam Ash’s brick-and-mortar retail stores earned $145 cardinal of gross successful 2023, while its online sales of philharmonic instruments generated $42 million.

Those numbers were sharply beneath its pre-pandemic sales, nan institution said.

Sam Ash had trouble paying landlords and vendors successful April, disrupting its inventory proviso and causing nan institution to beryllium locked retired of 1 of its stores, according to its tribunal filings. Universal Images Group via Getty Images

The Hicksville, New York-based institution has 830 employees.

Its stores are dispersed crossed 11 states, including Florida, California and New York.

The largest US music retailer, Guitar Center, revenge for Chapter 11 successful 2020 to complete a restructuring that eliminated $800 cardinal successful debt.