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#210165 - 07/12/06 05:34 PM Major Retailer Music Retailer files chapter 11
DanO1 Offline
Senior Member

Registered: 01/31/01
Posts: 3602
Loc: Maryland
Brook Mays has filed for chapter 11 .
www.brookmays.com


This is bigger than the collapse of MARS I believe. Mars file chapter 11 and 1 week later went chapter 7 .

Dan O'

Just FYI
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#210166 - 07/12/06 05:42 PM Re: Major Retailer Music Retailer files chapter 11
DanO1 Offline
Senior Member

Registered: 01/31/01
Posts: 3602
Loc: Maryland
A business can survive under chapter 11...
however, I'm certain they will need to close stores etc....
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#210167 - 07/12/06 08:41 PM Re: Major Retailer Music Retailer files chapter 11
George Kaye Offline
Senior Member

Registered: 11/24/99
Posts: 3305
Loc: Reseda, California USA
Dan,
This is big news! From what I know, Brook Mays is the third biggest chain store behind Guitar Center and Sam Ash. Where did you hear this information?

George Kaye
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#210168 - 07/13/06 07:57 AM Re: Major Retailer Music Retailer files chapter 11
DanO1 Offline
Senior Member

Registered: 01/31/01
Posts: 3602
Loc: Maryland
www.faimm.com

Would you like to see what they (BM) owe ?
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#210169 - 07/13/06 10:31 AM Re: Major Retailer Music Retailer files chapter 11
Fran Carango Offline
Senior Member

Registered: 05/26/99
Posts: 9673
Loc: Levittown, Pa, USA
Dan and George, I have to go back thru my Retail Music mags to find it, but I am pretty sure that Brookmays united with another company[I don't recall who]..I think this is another BIG business strategy to allow the "New" company a fresh start..
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#210170 - 07/13/06 10:41 AM Re: Major Retailer Music Retailer files chapter 11
Fran Carango Offline
Senior Member

Registered: 05/26/99
Posts: 9673
Loc: Levittown, Pa, USA
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#210171 - 07/24/06 08:03 AM Re: Major Retailer Music Retailer files chapter 11
DanO1 Offline
Senior Member

Registered: 01/31/01
Posts: 3602
Loc: Maryland
MMR Industry Update July 21, 2006


In The News...


Brook Mays Seeks Quick Sale After Chapter 11 Filing

After months of industry speculation, 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.

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.

In a follow-up story in the Dallas Morning News, an attorney representing Brook Mays said he expects the dealership to be sold out of bankruptcy in early August in advance of the back-to-school season. The retailer has been up for sale for several months, said Stephen A. McCartin of Gardere Wynne Sewell LLP. McCartin on July 14 said he will ask for an Aug. 2 auction during a hearing next week before U.S. Bankruptcy Judge Stacey G. Jernigan in Dallas.

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.

The filing comes on the heels of Brook Mays paying First Act $16.7 million to settle the lawsuit in 2003 by
First Act that found Brook Mays liable for false advertising and statements interfering with First Act's business relationships.
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