Sam Ash Music appeared to start the year on a high note. Founded in New York City in 1924, the family-owned and operated music retailer was poised to mark its 100th year in business. But signs of trouble began to emerge in the spring.
In fiscal year 2023, Sam Ash’s brick-and-mortar retail sales of musical instruments generated more than $145 million in revenue, according to court documents. The company’s e-commerce operation generated $42 million in revenue and Sam Ash’s Samson segment, which designs, markets and sells professional audio equipment to other retailers, generated over $33 million last year.
However, in March, reports surfaced that the company was closing about 20 stores, including its flagship location on 34th Street in New York City. In May, the company announced it would close all 42 of its stores in 16 states. About a week later, Sam Ash Music filed for Chapter 11, claiming $100 million to $500 million in both assets and liabilities.
A bankruptcy court judge about two months later approved a $15.2 million deal where Mexican music retailer Gonher was declared the winning bidder for most of Sam Ash’s assets. As part of the deal, Gonher received Sam Ash’s merchandise — excluding store closing sale assets — intellectual property elements, trademarks, social media accounts, internet domain names and customer data.
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In court documents, the company said “adverse market conditions,” including the pandemic, drove sales down. Additionally, Sam Ash said its revenue declined over the last five years, it had too many locations and it was too heavily dependent on in-store traffic.
One of the 42 stores Sam Ash Music operated at the time of its bankruptcy filing was in the Richmond area of Virginia. Here’s what that store looked like during its last week in business.
Although it had a Richmond address, the location at 9110 W. Broad St. was actually in Henrico County, about 12 miles east of the city’s downtown. The music store occupied a building shared with a Value City Furniture store. A listing from commercial real estate company J.C. Bar indicates nearly 32,000 square feet of property is available for lease. The retail space has prominent visibility, along with “large signage and ample parking,” according to the listing.
One of the company’s former rivals, Guitar Center, occupies a storefront in a shopping center next door. The store was in a busy retail corridor, with the Brookfield Properties-owned Short Pump Town Center open-air mall about five miles west along the same road.
Nate Delesline III/Retail Dive
On July 13, about two months after the company announced the store closures, the Richmond location had nearly reached its final week, with just eight days in business left, according to a sign inside the front of the store. On the exterior, a large yellow and black banner was underneath the Sam Ash marquee that read “STORE CLOSING.” On another pillar, a separate sign advertised that the store fixtures, furniture and equipment were for sale.
Another easel inside displayed discounts available on select merchandise. By far, the most heavily discounted item in the store was printed sheet music. Purchases of 15 or more pieces of sheet music were available for 95% off. The next largest discounts, according to posted signs, were 80% off videos and 70% off woodwind instrument reeds, followed by 60% off select drum accessories.
On that Saturday afternoon, individual sales floor spaces that previously housed audio recording and DJ equipment, high-end acoustic guitars and drums were closed, with their doors shut or blocked.
Other signs posted around the store indicated that all sales were final, while other signs explained that all service plans, replacement plans, gift cards, store credits and gift certificates ended on June 7.
The available merchandise included a mix of new and used, as well as scratched, dented or damaged musical instruments and accessories.
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Nate Delesline III/Retail Dive
They were mixed with display fixtures, furniture, computer monitors and a collection of seasonal holiday decorations that were likely used to dress up the store.
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Nate Delesline III/Retail Dive
The guitar and drum sections appeared to have the largest selection of merchandise remaining at the time. At least a couple dozen guitars were still displayed for sale on the wall, as were amplifiers and a few higher-end electric and acoustic guitars in glass cases.
They included a Fender Precision bass discounted 40% from $1,850 to $1,100.
About a half dozen new and used drum kits were out, along with about 12 more new in-the-box drum kits ranging from beginner models to high-end Drum Workshop kits.
A selection of drum heads was marked down to 70% off, meaning that name-brand drum heads by Remo, Evans and Aquarian that normally sold for about $25 each were available for about $6.50. Most other music accessories, like new cables, guitar strings and drumsticks appeared to be gone.
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Nate Delesline III/Retail Dive
Elsewhere in the store, other merchandise on offer included a Gemeinhardt flute marked down 50% from $1,500, a dual 18-inch JBL subwoofer speaker marked down 40% to $2,477 and violins marked down 50% from $250 to $125.
In early September, the retailer posted messages indicating “The Next Chapter, Coming Soon” across its social channels. That messaging reflects that Gonher plans to relaunch the website in the coming months, Alex Valdés, Gonher Group marketing manager, told Retail Dive in an email. “There are currently no plans to reopen physical stores, our entire strategy will be focused on online sales,” Valdés said.
via https://www.aiupnow.com
Nate Delesline III, Khareem Sudlow
