Music 123 is bankrupt but still open December 2006 update
Written: Nov 23 '06 (Updated Dec 09 '06)
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Update, December 2006
I received an email from a Music 123/Woodwind and Brasswind employee, who said that there had been no dismissals, business was proceeding as usual, vendors were cooperating.
I then saw a late November article in the South Bend Tribune that said that the bankruptcy was a chapter 11 filing, which means that a company can keep operating while selling off assets to benefit the creditor. The creditor that precipitated the bankruptcy was a $9 million judgment against Music 123/WWBW by Music 123's former owners, who had been fired.
In an article dated December 7, The South Bend tribune reported that that Conn-Selmer, through its Steinway unit, bested the Guitar Center offer Steinway, Inc. has given an offer for purchasing the assets about 2.3 million higher netthan the Guitar Center offer, after deducting the $1.1 millinion breakup fee that WWBW will owe to Guitar Center if the assets are sold to another buyer.
Offhand, this looks to be better for the employees because Conn-Selmer has no retail presence in the US.
On the other hand, there will likely be unsold inventory that will be subject to asset sale. The sale will likely be less than at full cost. So, it's possible that some of the items remaining, might be sold by whomever buys them at a huge discount. It is also not clear as to whether WWBW/Music 123 will remain in business after the asset sale.
While I'm happy that they are restocking items, these facts actually don't change the recommendations in my original epinion much.
Customer service and stock of saleable, high-volume items might be better than I first thought. However, the closer January gets, the more uncertain returns become. On the other hand, they have great prices on great brands. So, you might want to try instruments at their headquarters in South Bend, Indiana, or even take a chance on a name-brand instrument. Name-brand, in-stock supplies or accessories are worth buying, although items with lesser volume might be cheaper after the asset sale, if the buyer closes them out.
My original epinion is shown below the ++++++s
++++++++++++++++++++++++++++++++++++++++++++++++++++++
Pros: great selection and prices
Cons: They probably won’t be restocking out of stock items. Service may suffer.
Bottom line: If they have supplies or accessories in stock that you want and their price is the lowest, you should buy them.
I’ll spend the first part about this epinion talking about the bankruptcy and what it means to you, a potential buyer, and then I’ll review what’s available on their website and my experience with them until now.
Yesterday, I was at my local music store buying some reeds and I heard the owner talking on the phone about the Woodwind and the Brasswind, which owns Music123.com. I asked him about it and he told me that the Woodwind and the Brasswind declared bankruptcy and sold their assets to Guitar Center. The owner didn’t seem too upset about it. He and I had talked a few weeks earlier about the Woodwind and the Brasswind selling pro clarinets at such low prices the regular music stores couldn’t afford to keep them in inventory. He said that they were selling about 80% of the volume of Buffet’s top pro model, the R-13, which is far and away the most popular choice of pro clarinetists.
So, I did a Google search. The bankruptcy was declared November 21. The sale was announced on November 22, with Guitar Center’s CEO announcing that they had an agreement to buy, through their Musician’s friend subsidiary, substantially all of the instruments and assets, subject to bankruptcy court approval overbid in an auction that would take place in January.
How’d they get to this point? Well, they sell at thin margins, so it takes a lot of volume to achieve profit. When I was at their main location during the summer, it seemed as if they had a lot of close-out merchandise. Having an extensive inventory meant that they had a lot of stuff they had to pay for while storing it. I guess the sales and margins weren’t enough to pay for it.
Music 123’s web site is still functional. I called the 800 number and it was answered by a recording saying they were closed for the holiday. Nothing about the bankruptcy.
I called on Friday morning and was told by a REAL LIVE woodwind specialist that they were "absolutely" filling orders. What's interesting is that I also called the 800 number for the Woodwind and the Brasswind and got the same woodwind specialist. They are probably down to a skeleton crew.
So, what does this mean to a buyer of musical supplies:
1.They will likely stay open
Sure. My accountant experience tells me that Guitar Center likely offered far less than Music 123’s cost for their inventory. Music 123 will make more money to apply to their debts by selling product at retail instead of through bankruptcy.
2. Customer service may suffer a bit
They likely will have fewer employees. I myself have not had any customer service problems, but don’t expect a lot of phone help without a long wait. Salaries and benefits are reduced to the bone during a bankruptcy.
3. They are probably a good source for supplies and accessories that are in stock
They will want to sell these items. It’s hard to go wrong with packaged, name brand supplies and accessories. Their prices are usually pretty competitive, although you can sometimes do better on Ebay or elsewhere.
4. They likely will not restock supplies and accessories that are not in stock
This takes cash out. It’s possible that they might restock high volume items, but I think it unlikely.
5. I wouldn’t buy a non-electronic instrument from them
There are a number of reasons. First, even among well-regarded models, there is some variability among the instruments. It’s possible that you may receive an instrument that is not that great. If you return it, getting a refund could prove difficult. Second, with likely fewer staff, there will not be the emphasis on setting up and play testing instruments. Third, if you get an instrument, it’s not clear if you can benefit from their 45 day return, 45 day price match policy.
So, I’d go ahead and use them for in-stock supplies and accessories. I would not use them for anything that could be returned, like mouthpieces or instruments.
And now, for the generalities
Music123 is a web site that sells a vast selection of musical instruments, supplies and accessories at discount prices. Owned by the Woodwind and the Brasswind, the site is nevertheless worth pursuing separately , along with the other, because their inventories have some differences in stock. Music123 specializes in band instruments and supplies, and has extensive items available in the following categories: Accessories | Amplifiers | Brass | Computer Hardware/Software | DJ & Lighting | Guitars | Home Audio & Video | Keyboards | Live Sound | Musical Gifts | Percussion | Recording | Sheet Music | Stringed Instruments | Woodwinds
Their prices are usually very competitive relative to the competition and their house brand (woodwind) supplies and accessories, particularly cases, are an excellent bargain as well. Earlier this year, I bought a house brand double clarinet case. The price was wonderful and the quality excellent.
They also have an outlet section with reduced prices, organized by type of item.
My experience with them is that orders have shipped within one business day and have been correct, whether ordered through the web site or over the phone.
There is also a 3% rebate available of you access the site through the Ebates site. As of this writing, it is still in effect, although it’s not clear how long it will last.
So, they continue to be a good source for in-stock supplies and accessories, but I wouldn’t buy an instrument from them. 3 stars.
Thanks for reading. God bless!
Please check out the following related reviews:
Ebates web portal
The Woodwind and the Brasswind
MusiciansFriend.com web store
Sheetmusicplus.com web store
Activemusician.com web store
There is NOTHING like a Selmer (Sax)
Recommended:
Yes
What product did you purchase or try to purchase? double clarinet case
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