A Beloved Music Supply Chain Now Closes All Stores
A beloved music supply chain now closes all stores following of its Chapter 11 bankruptcy after nearly 100 years in business.
Family-owned music retailer Sam Ash Music, which opened its first store in New York City in 1924, is set to close all its locations after filing for Chapter 11 bankruptcy earlier this year.
The retailer was preparing to celebrate its 100th anniversary when it announced the closures, as reported by RetailDive.
Despite generating over $145 million in revenue from store sales in 2023 and an additional $42 million from online sales, Sam Ash struggled to adapt to changing market conditions.
The company’s Samson segment, which sells professional audio equipment, contributed approximately $33 million in revenue.
However, in March, Sam Ash began closing 20 stores, including its flagship NYC location.
By July, the company announced it would shutter all 42 stores across 16 states, which include locations in Arizona, California, New Jersey, and more.
A week after this announcement, Sam Ash filed for Chapter 11, revealing assets and liabilities estimated between $100 million and $500 million.
The retailer cited adverse market conditions, including the impacts of the pandemic and a reliance on in-store traffic, as major factors in its financial decline.
In a significant move, a bankruptcy judge approved the sale of most of Sam Ash’s assets to Mexican music retailer Gonher for $15.2 million.
This acquisition includes merchandise, trademarks, and customer data, but excludes assets from the store closing sales.
During the liquidation process, shoppers at the Richmond, Virginia location enjoyed steep discounts, with offers like 95% off sheet music and 70% off drum sets and accessories.
Looking ahead, Gonher plans to relaunch Sam Ash’s website in the coming months, focusing solely on online sales.
“There are currently no plans to reopen physical stores,” said Alex Valdés, Gonher Group marketing manager, emphasizing a strategy centered on e-commerce.
The retailer’s message, “The Next Chapter, Coming Soon,” hints at a new direction for the storied brand.
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Also Read: A Struggling Gas Station Chain Now Files An Unexpected Bankruptcy
Other Economy News Today
A massive rental company with 34k locations now shuts down its operations after filing for bankruptcy and 22 years in business.
Users of movie rental company Redbox were left saddened after it was announced that it would be shutting down operations.
The announcement comes after the rental company’s parent company, Chicken Soup for the Soul Entertainment, filed for Chapter 11 bankruptcy.
According to court documents obtained by the Washington Post, the Connecticut-based company claimed to be one billion dollars in debt.
As a result, Redbox, which was a staple of many grocery stores including Walgreens, and CVS will be shuttered.
Many fans took to social media to express how upset they were with the loss.
“I knew it was coming, sadly,” UltraVada wrote in a post on X, formerly Twitter.
“It was inevitable,” a second person mourned.
“I knew this would happen when I heard they filed for Bankruptcy but its still sad to hear. I have a lot of fun memories of Redbox,” a third person lamented.
“I still don’t think this will be or ever be the end of physical media as we do still get remasters of some movies in 4k/Bluray.”
One person revealed that they had forgotten the rental service had existed.
Some users were not surprised by the announcement.
“Not surprised since nobody really rents videos anymore with the rise of streaming and what not,” one user admitted.
“Also kinda remember getting into a feud with them on here.”
One user also pointed out that the last remaining Blockbuster, located in Bend, Oregon, managed to outlive Redbox.
Redbox was acquired by Chicken Soup for the Soul Entertainment (CSSE) in 2022 and became one of the company’s flagship video-on-demand streaming services.
At its peak, CSSE operated more than 20,000 DVD rental kiosks across the country.
The company’s filing means that the company’s more than 1,000 employees will be laid off, per The Wall Street Journal.
It was also reported by Deadline that many employees at CSSE hadn’t received their paychecks and had medical benefits cut in late June.
Also Read: This Massive Mall Retailer Is Now Closing In California
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