Brooks May Music Group

Discussion in 'Trumpet Discussion' started by samdaman, Aug 14, 2006.

  1. samdaman

    samdaman Pianissimo User

    129
    2
    Jun 15, 2006
    Baltimore, MD
    Hey Everyone!! I've just heard a rumor that the Brooks May Music Group is going out of business due to a law suit of some sort??? I was wondering if anybody heard anything else about it??? I think it involves Yamaha too. I'm just curious because our local music store was just recently taken over by them and now they're going out of business.... grrr. Thanks.
     
  2. Siegtrmpt

    Siegtrmpt Mezzo Piano User

    549
    3
    Nov 21, 2005
    Virginia
    First Act sued them and won 21M. I understand they settled for something less than the full amount (16-17M) and that it had to do with a letter Brook May sent out to music educators about First Act instrument quality. Got to be careful what you put into print and even more so if you send it out.
     
  3. skuni

    skuni Piano User

    271
    1
    Jan 20, 2006
    Raleigh, NC
    Brookmays is restructuring under new owners. The plan is to keep the band and orchestra division as is. This is according to an e-mail I recieved this morning.
     
  4. Siegtrmpt

    Siegtrmpt Mezzo Piano User

    549
    3
    Nov 21, 2005
    Virginia
    I opened up the ad page for the military post exchange today and, sure enough, there were First Act instruments advertized in the toy section along with the "Groovy Girls" ethnic doll collection and the "KNex" fun sets.
     
  5. Tootsall

    Tootsall Fortissimo User

    4,529
    8
    Oct 25, 2003
    Yee HAW!
    Finally! There IS "truth in advertising". LOL.
     
  6. dwindham

    dwindham Pianissimo User

    98
    2
    Aug 6, 2006
    Just because Wal Mart sells it does not mean its a good product :)

    Now just to play with I got an electric guitar set up for around $100 from Target that was a bag, guitar, strings, chord, amp, etc.

    Its by no means for a die hard muscian but for just playing around on it didnt seem to bad of a deal.
     
  7. bilboinsa

    bilboinsa Piano User

    274
    1
    Jan 24, 2006
    San Antonio, TX
    Here is the Dallas Moring News version:
    <<Brook Mays liquidation to bring store closings

    11:35 PM CDT on Wednesday, August 9, 2006

    By BRENDAN M. CASE / The Dallas Morning News

    Brook Mays Music Co.'s stores and retail inventory will be liquidated following a $33.4 million asset sale approved Wednesday by a federal bankruptcy judge.

    The liquidation, which will result in the closure of 62 stores in eight states, including 12 in the Dallas-Fort Worth area, is expected to wipe out hundreds of jobs.

    Business will continue as usual for thousands of rental customers, including school bands throughout Texas, said Scott Bernstein, who heads SB Capital Group LLC, which is leading the Brook Mays purchase.

    "There's no interruption in the rental business," said Mr. Bernstein, speaking at U.S. Bankruptcy Court in Dallas, minutes after Judge Stacey Jernigan approved the sale.

    "For those customers who have rented instruments from Brook Mays, there will be no difference in the level of service," he said.

    Mr. Bernstein said he hasn't decided if he will still be in the rental market a year from now, but he said, "We think it's a very attractive business."

    It was unclear Wednesday how many of Brook Mays' 800 employees will be able to keep their jobs. While the new owners will need workers to continue the rental business, employees at retail stores are expected to lose their jobs in coming months.

    SB Capital said it would hold going-out-of-business sales for Brook Mays' retail inventory, which consists largely of musical instruments. The process is expected to conclude by the end of November.

    SB Capital has two half-owners: Mr. Bernstein, who maintains offices in Great Neck, N.Y., and the Schottenstein Stores Corp., a retail holding company based in Columbus, Ohio.

    Its partners in the Brook Mays purchase were EMCC Inc., Tiger Capital Group LLC and Palisades Collection LLC.

    The group submitted the highest bid in a Tuesday auction for Brook Mays' assets.


    Pleased with results

    Its offer was 16 percent higher than the initial bid of $28.7 million made last week by National Music Funding Corp. and Great American Group LLC.

    "We were pleased," said Stephen McCartin, a Dallas bankruptcy lawyer representing Brook Mays. "We think it was a successful auction."

    Brook Mays has more than 1,000 creditors and 60,000 rental customers, according to its bankruptcy filing.

    Creditors didn't object to the sale, seeing it as the best outcome to an undesirable situation. The sale proceeds will go to secured creditors including J.P. Morgan Chase, Mr. McCartin said.

    Unsecured creditors include Yamaha Corp. of America, Conn-Selmer Inc. and Kawai America Corp. As part of the bankruptcy proceedings, Brook Mays also obtained $210,000 by selling some intellectual property rights to Yamaha.

    Brook Mays declared Chapter 11 bankruptcy on July 11 after several months of looking for a buyer. It listed debts worth more than $70 million and assets of between $10 million and $50 million.

    Brook Mays chief executive Bill Everitt, looking somber at court Wednesday, declined to comment on the sale. Mr. Everitt's family had owned the business since the early 1950s.

    Founded in Dallas in 1901, Brook Mays had sales of about $150 million last year. It operates stores under 10 brands, including the corporate name.

    Over the last year, Brook Mays has faced rising competition, liquidity problems and a huge adverse judgment in a civil lawsuit.


    Encountering problems


    In an e-mail interview last month, Mr. Everitt said last year's back-to-school season was weaker than usual due to "budget restraints at some school districts, softer enrollment in instrumental music programs, competitive pressures and a higher demand for used vs. new instruments."

    In addition, he said, there was an "industrywide excess of entry-level instruments," due in part to the entry of big-box retailers into the business.

    Last year, a jury found Brook Mays liable in a civil suit alleging that the Dallas company had made false advertising statements about First Act Inc., a Boston-based musical products company. Jurors awarded First Act $20.7 million in December.

    Brook Mays' insurers paid $16.7 million last month to settle the case, but the payment was not the source of the company's liquidity problems, said Mr. McCartin, the company's bankruptcy lawyer.

    Staff writer Maria Halkias contributed to this report.>>

    According to the story, the verdict was not the source of the liquidity problems. Had to jack up their premiums, though!

    I went by a local BM and found no good "deals".
     
  8. dwindham

    dwindham Pianissimo User

    98
    2
    Aug 6, 2006
    I called a local BM store to talk to the repair shop to see if they would sell me some new felts/corks for my bach and was told they no longer had a repair shop and were closing the store within the next 60-90 days.

    Right now they said they were only at 10% off. I imagine the discounts won't get better for a while and may never get to a drastic discount. I'll be checking out both of the ones near me.

    I'm not sure now where you can go locally to get repairs done and I'm in the suburbs north of Dallas and not in a small town.
     
  9. bilboinsa

    bilboinsa Piano User

    274
    1
    Jan 24, 2006
    San Antonio, TX
    Someone on TH said there was a real good shop in Carrollton--on Broadway, I think...
     

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