đ„New Chapter 11 Bankruptcy - Sam Ash Music Corporationđ„
Old school music store is liquidating. Is there a savior somewhere?
Cue the requiem, or a dirge in a minor key. On May 8, 2024, NY-based Sam Ash Music Corporation and 11 affiliates (âSam Ashâ or the âcompanyâ and collectively, the âdebtorsâ) savagely filed for bankruptcy in the District of New Jersey (Judge Meisel) during ⊠wait for it ⊠the year of its 100 anniversary, đŹ. There is nothing ârock n rollâ about that denouement. Cue âDust in the WindââŠ
⊠because the ongoing retail apocalypse appears to have claimed another scalp. Bankruptcy in this case â like several of the other recent retail bankruptcies (e.g., rue21, 99 Cents Only, Express?) â means liquidationâŠ
âŠthough the debtors are holding out some hope that thereâs a 363 sale here of some kind. Thatâs right, on one hand youâve got an army of liquidator types working with the debtors â weâre talking Tiger Capital Group LLC and Gordon Brothers Retail Partners LLC and A&G Real Estate Partners LLC â and, on the other hand, youâve got Tiger Finance LLC providing a $20mm DIP (most of which is a roll-up of the $18.2mm+ outstanding under the debtorsâ pre-petition ABL) and credit bidding it as a floor bid â at an estimated price of $9.1mm â for a proposed âgoing concern saleâ of IP/e-commerce assets/FF&E/inventory/leasehold-interests/spitwads.* Basically, Tiger, out of multiple entities, is driving this bus and that bus is keeping things on an awfully tight schedule: