Music retailer Sam Ash Files has filed for Chapter 11 bankruptcy protection as it moves to shutter all its stores, but said "stay tuned" as it pursues a going-forward strategy that includes selling its online and wholesale businesses.
The century-old company, which is based in Hicksville, New York, on Wednesday went to the U.S. Bankruptcy Court for the District of New Jersey to file its bankruptcy petition. The retailer made that legal move about a week after it announced it planned to close all its 42 stores.
Tiger Group and Gordon Brothers are now conducting liquidation sales at those brick-and-mortar locations as the company said it looks to reposition itself. In a statement, the chain 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.
Sam Ash, an icon for some musicians and music lovers, is part of the growing list of U.S. retailers this year that are either shutting all their locations or just part of their store fleets. Several of those companies — including Sam Ash — have blamed financial woes on the impact of the COVID-19 pandemic and competition from online rivals.
"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," David Ash, CEO of the privately owned business, said in a statement.
"Unfortunately, in today's post-COVID environment, the challenges to our brick-and-mortar business have necessitated a restructuring," Ash said. "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 maximize value for the benefit of the company's stakeholders. Stay tuned."
Family-owned Sam Ash has stores in Arizona, California, Connecticut, Florida, Georgia, Illinois, Indiana, North Carolina, New Jersey, Nevada, New York, Ohio, Pennsylvania, Tennessee, Texas and Virginia.
Sam Ash's inventory for sale includes guitars, amps, effects, pianos, drums, cymbals, keyboards, microphones, professional sound and recording equipment, sheet music, band and orchestra instruments.
The brands represented include Fender, Gibson, Taylor, Martin, Yamaha, Takamine, Ibanez, Epiphone, Jackson, Gretsch, Michael Kelly, Samson, Hartke, Soldano, Friedman, Orange Amplification, Blackstar, Boss, EVH, Tama, Ludwig, Zildjian, Paiste, Casio, Roland, Kawai, Korg, Jean Baptiste, and Carlo Robelli.
Immigrant violinist Sam Ash and his wife, Rose, launched their first music store in Brooklyn in 1924. Their sons, Jerry Ash and Paul Ash expanded the business, growth that continued over subsequent generations. Along the way, Sam Ash earned a national reputation for high-touch service and its customer-friendly "Come and Play" ethos.
Four generations of the family, most recently Sam and Rose's great-grandchildren, have played an active role in the iconic business.