A retailer closing all stores now files an official bankruptcy after warning customers it would shutter locations nationwide.
Sam Ash has filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of New Jersey as it plans to close all of its 42 stores across 16 states.
The privately owned family business, long known as a premiere music retailer, is exploring options that could include selling its ecommerce operations and related IP as well as its “Samson” wholesale business.
“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 Sam Ash in a statement.
“Unfortunately, in today’s post-COVID environment, the challenges to our brick-and-mortar business have necessitated a restructuring.
We are exploring a number of strategic options in conjunction with these inventory sales,” Ash added.
“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.
Stay tuned.”
Tiger Group and Gordon Brothers, which are conducting store closing sales, are emphasizing the rare opportunity these sales offer to musicians, DJs, producers, music educators and students.
“Sam Ash offers a huge array of new and used gear from the best-known brands in music,” said Michael McGrail, COO of Tiger Group in a statement.
“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 rarely, if ever, is available in a blowout sale.”
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Also Read: An Unexpected Retailer Is Now Closing All Stores in Illinois
Other Economy News Today
A massive clothing retailer is now closing all 540 stores in just six weeks after unexpectedly filing for bankruptcy.
Liquidation sales will be held at rue21 outlets across the US as bosses rush to clear the last remaining stock.
The clothing retailer has entered bankruptcy and bosses have announced plans to close all 540 remaining stores within six weeks, reports The US Sun.
It is the third time in less than 25 years the fashion retailer has entered bankruptcy, per Bloomberg.
Court documents seen by Reuters revealed the company has more than $190 million of debt.
The chain has 540 stores across the US and 4,900 workers are set to be impacted.
Outlets are to slam shut within four to six weeks, according to court papers.
Bosses also announced plans to sell the company’s intellectual property.
The company narrowly avoided going into bankruptcy in October 2022.
Chiefs filed for bankruptcy in 2017 as they rushed to clear around $700 million worth of debt.
Bosses shuttered 400 stores as well and renegotiated leases.
Execs identified the rise of online shopping and changing consumer trends as reasons behind the bankruptcy.
Michele Pascoe, the interim CEO, also alluded to the impacts of competition and inflation.
The company also filed for bankruptcy in 2002.
At its peak, the company had more than 1,000 stores across the US.
The chain has dozens of outlets across several states, including Florida, Georgia, Illinois, North Carolina, Pennsylvania and Texas.
The teen fashion retailer is not the only clothing chain that has entered bankruptcy over the past year.
Last month, Express chiefs filed for bankruptcy, and at least 100 stores are set to close.
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