• Despite a leading industry position as a musical instrument retailer, and an outstanding reputation for product line breadth and customer service, the Company began experiencing financial difficulties much of which stemmed from litigation with minority shareholders.
• Additionally, the Company faced increased industry competition coupled with issues arising from the consolidation of multiple warehouses into a new distribution center and a software conversion. Continuing losses and the minority shareholder litigation eventually led to a bankruptcy filing.
• The Company was well served by Fort Dearborn Advisors (“FDA”) in this transaction. In a short period of time, we contacted over 100 industry and financial buyers leading to multiple visits and offers from which to choose.
• When the approved “stalking horse” terminated its bid, FDA quickly negotiated a deal with the industry’s largest participant, who had expressed strong interest but was initially outbid earlier in the sales process.