Brook Mays, 3rd largest music dealer, files Chapter 11
"After months of industry rumor, Brook Mays Music, the 105-year old Dallas-based chain, filed for Chapter 11 bankruptcy protection on July 11. The filing was made at the U.S. Bankruptcy Court, Northern District of Texas.
The company has more than 1,000 creditors, 800 employees and 62,000 rental customers. The company took on an equity partner, Wellspring Capital, in 2000 to help fund its growth. Among its retail acquisitions during that period were McFadyen Music, Duncan Music, Caldwell Music, Zeswitz Music, McMurray Music, and Kurland Salzman Music."
In the filing, Brook Mays listed of assets of $10 million to $50 million and debts of $50 million to $100 million. The Dallas Morning News reported JP Morgan is lending the dealership $10.6 million to keep operations going during its Chapter 11 case. Top creditors are owed in excess of $23 million. Yamaha leads the way, being owed an estimated $6.5 million, followed by Conn-Selmer at $5.0 million. Kawai is third at $1.6 million. Also owed more than $1.0 million each are Roland, Pearl River Piano, and Hoshino. Creditors owed in excess of $500,000 include Fender, Kaman, Pearl, and Buffet-Crampon. "
A recent industry survey placed Brook-Mays in the top three dealers in the music industry, behind Guitar Center and Sam Ash, with sales of $176,400,000.
1,000 creditors?? I hope we're not 999 on the list.
There is one not far from where i live. I hate to see them in trouble or going out of business, even if it does produce some bargains on keyboards and stuff. Their prices are kinda steep, too bad they didn't just lower them when they noticed customers going elsewhere, but I don't know if that was what it was.
They rent alot of school instruments. The schools here had a problem lots of corruption which included disappearing instruments, and at one or more of the schools, some of the people who were arrested for pawning these, were i think the band dirrector and people connected with the school. I don't recall all the details but it was a lot of instruments. This may be one of those deals where the they have to wait because the property is evidence for some trials... which kinda sux if they are hurting for money.
The other corruption that was going on, was people using credit cards that were supposed to be for school equipment or city equipment, so they may have lost something there too, i don't know.
"Brook Mays Music Co. expects to be sold out of bankruptcy in early August in advance of its busy back-to-school season.
The 105-year-old Dallas-based chain – which has rented band and orchestra instruments to generations of school musicians – filed for Chapter 11 bankruptcy Tuesday, blaming last year's disappointing back-to-school and holiday sales.
The music retailer has been up for sale for several months, said Stephen A. McCartin of Gardere Wynne Sewell LLP, which is representing Brook Mays in the bankruptcy. "But a buyer would be more likely to want to acquire it out of bankruptcy with assurances" that its liquidity issues were behind it, he said."
Looks like they aren't going anywhere, just changing hands.