Sam Ash Music Stores

Sam Ash Music Stores logo


Financial Advisor

Hicksville, NY

Founded in 1924, it is the large the largest family owned chain of musical instrument stores in the US with 45 locations in 16 state.

Sam Ash Music needed help in hibernating their business and putting together a restart budget as well as a go-forward strategic plan in the wake of COVID-19.  As with most businesses, the Company was forced to shutter all of its locations overnight and needed assistance with liquidity planning while hibernated, as well as the costs associated with a restart.  Additionally, Sam Ash needed to present to its lenders a financial plan for the balance of 2020, and for 2021.

Key Challenges
COVID Related Liquidity Issues
Hibernation Planning
Restart Budgeting
Profitability Analysis
Staffing Model Review
Growing the E-Commerce Business

Engagement Highlights

Phase I – Assess the Business Performance / Liquidity Forecasting

  • Developed a hibernated and post-hibernated liquidity forecast with the Company.
  • Helped the Company apply for PPP loans, of which the Company received $10M.
  • Successfully Negotiated on behalf of the Company with their payroll processor that was requiring significant reserves on the account given the impact of COVID-19.

Phase II – Development of a Restart Budget and GO-Forward Strategic Plan

  • Performed a by-location performance and profitability review to identify any locations that the Company may look to exit. 
  • Reviewed Corp G&A by person to identify opportunities to improve profitability and to better align with the expected sales of the business in a post-COVID operating environment. 
  • Worked with the Company to develop a new staffing model that improve 4-Wall EBITDA by greater that $6M.
  • Assisted management in developing strategies to continue to improve the long-term growth of the E-Commerce business.
  • Used the findings from our review of the business and discussions with management to build a 2020 and 2021 strategic plan that was presented to the Company’s lenders.

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