Brook Mays: Everything Must Go!
A date's been set for the Brook Mays auction: August 8, a week from today. That's pretty much when the 105-year-old local musical-instrument company will cease to exist as we've known it, only a few weeks after it filed for Chapter 11 following lower-than-expected revenue in the third and fourth quarters. It owes J.P. Morgan Chase $41 million from a $60 million loan, which was supposed to pay back the likes of Yamaha Corp. of America, Conn-Selmer Inc., Roland Corp. U.S., Kawai America Corp. and others to whom Brook Mays owes a fortune. There have been some other legal and financial doings in U.S. Bankruptcy Court for the Northern District of Texas in Dallas in recent days, but it all comes down to this, says the subscription-only Daily Deal:
"Ahead for Brook Mays is the Aug. 8 auction, followed by a hearing the next day to approve the sale and consider the creditors committee's request to convert the case to a Chapter 7.
At the auction, Brook said it will look to sell itself as either going concern or asset by asset to multiple buyers. The debtor will also accept offers from liquidating agents to conduct going-out-of-business sales at certain stores."