Capstone Partners’ Special Situations Investment Banking Group (SSIB) has completed the sale of Sam Ash Music Corporation (“Sam Ash” or “the Company”), under §363 of the US Bankruptcy Code, to Organizacion Gonher S.A.de C.V.
Founded in 1924, Sam Ash is a third generation, family-owned supplier of new and used musical instruments and equipment, instrument repair services, music lessons, and music and audio products. The Company operated 44 stores supported by an e-commerce platform and a wholesale segment that manufactured and distributed musical instruments and related products globally.
The strong performance of the e-commerce and wholesale segments of the Company was not sufficient to overcome the cumulative losses in the brick-and-mortar operation, which only increased during the COVID-19 pandemic, and the Company was forced to file Chapter 11 bankruptcy in May 2024.
Sam Ash is an iconic, 100-year-old brand known by musicians around the world. We were honored to work with the Ash family, SierraConstellation, and Cole Schotz on this engagement. SSIB is extremely pleased to have preserved the Sam Ash brand and legacy, saved 100 jobs for Sam Ash employees, and achieved a materially better-than-expected outcome for all stakeholders.
ABOUT CAPSTONE’S SSIB GROUP
Capstone’s SSIB Group offers a full range of services to companies and stakeholders facing capital structure challenges including, but not limited to, distressed M&A, distressed capital raises, balance sheet restructurings, corporate divestitures and carve-outs and strategic alternatives.
