Members Jon Hiller Posted July 2, 2006 Members Share Posted July 2, 2006 Music Industries Liquidates Business In a letter dated June 16, attorneys for Music Industries Corp. advised creditors of the liquidation of the Garden City, N.Y.-based company. "Earlier this week, the sale of Music Industries Corporation's inventory, trademarks and equipment was consummated," wrote attorney Harvey L. Goldstein of the law firm Finkel Goldstein Rosenbloom & Nash, LLP. "The sale was finalized with the consent of the secured creditor, the Bank of America, who received the proceeds of the sale on account of its secured debt." Music Industries was the exclusive U.S. distributor of such brands as Quik-Lok, Jay Turser Guitars, Jay Jr. Guitars, J.J. Heart guitars for girls, Studiologic by Fatar MIDI Keyboard Controllers, Rok Sak gig and utility bags, and Madison digital pianos. For many years, Music Industries was owned and operated by Earnest Briefel and his son, Dennis Briefel. :cry: I have a friend who just retired from a large, large music wholesaler a couple years ago, he told me he went by the place to see his old co-workers last week, only to find out they are closing shop at the end of summer/early fall. I don't know if I am at liberty to name names yet, but this will take down three MAJOR players as far as brands go if it happens. CGM music, which was a small loudspeaker cabinet manufacturer, and who made my private labelled Union Speaker Company cabinets, also went out of business last month. Also, Strings-n-Things out of Memphis filed chapter 7 this spring as well, although they are back in business apparently, under a new limited-liability corporation, from what I read in a trade magazine. Sad days for the music industry. If this happens this fall with this other wholesaler, it will really shake things up, I think. I don't think the music industry as a whole is very healthy right now. :cry: Link to comment Share on other sites More sharing options...
Members inscho Posted July 2, 2006 Members Share Posted July 2, 2006 Originally posted by Jon Hiller Also, Strings-n-Things out of Memphis filed chapter 7 this spring as well, although they are back in business apparently, under a new limited-liability corporation, from what I read in a trade magazine. there isn't much going on there anymore, they developed a bad reputation from what I understand. Link to comment Share on other sites More sharing options...
Members GuyaGuy Posted July 2, 2006 Members Share Posted July 2, 2006 does this mean i should pick up a few JT's before they're worth thousands? Link to comment Share on other sites More sharing options...
Members dbx Posted July 2, 2006 Members Share Posted July 2, 2006 Is it just the distributor that went down? I thought the Quik-Lok stands were made in Italy? I have a couple of different QL stands, was eyeing the 5 slot quitar stand...might have to grab one before supplies dry up... Link to comment Share on other sites More sharing options...
Members Jon Hiller Posted July 2, 2006 Author Members Share Posted July 2, 2006 Music Industries wasn't really a major player as far as wholesalers go, but they had some cool products. Some of the Jay Turser guitars were really nice, especially when you considered the price points. I doubt they'll ever be truly collectible, though. This other wholesaler, if they do in fact close, will take three major brand names out of the market, brands that some major players use. I hope it doesn't happen, but considering this friend of mine used to work for them, I'd say it's pretty credible information. Link to comment Share on other sites More sharing options...
Members Jon Hiller Posted July 2, 2006 Author Members Share Posted July 2, 2006 Originally posted by dbx Is it just the distributor that went down? I thought the Quik-Lok stands were made in Italy? I have a couple of different QL stands, was eyeing the 5 slot quitar stand...might have to grab one before supplies dry up... That's a good question, I don't know if Music Industries actually owned Quik Lok or if they were only the US distributor for them, but you're right, they were/are made in Italy, at least the ones I own were. Link to comment Share on other sites More sharing options...
Members NITEFLY182 Posted July 2, 2006 Members Share Posted July 2, 2006 Kaman still owns basically everything and now that Fender has a wholesale division there wont be much to compete with. Link to comment Share on other sites More sharing options...
Members dbx Posted July 2, 2006 Members Share Posted July 2, 2006 Thanks for the heads-up Jon... Link to comment Share on other sites More sharing options...
Members Jon Hiller Posted July 2, 2006 Author Members Share Posted July 2, 2006 Originally posted by NITEFLY182 Kaman still owns basically everything and now that Fender has a wholesale division there wont be much to compete with. Kaman had to eat $ 210,000 in bad debt from the Strings-n-Things bankruptcy, according to a trade magazine article I read. I hope they have deep pockets. Link to comment Share on other sites More sharing options...
Members NITEFLY182 Posted July 2, 2006 Members Share Posted July 2, 2006 At the same time theyre buying out smaller wholesalers so I dont think theyre in too big of a problem. Was this in MI Insider? Link to comment Share on other sites More sharing options...
Members Jon Hiller Posted July 2, 2006 Author Members Share Posted July 2, 2006 nope, it was on MMR's website Link to comment Share on other sites More sharing options...
Members NITEFLY182 Posted July 2, 2006 Members Share Posted July 2, 2006 Oh word. The trade mags never seem to have much worth reading anyway. MI Spy is the only thing I look at any more. Link to comment Share on other sites More sharing options...
Members Jon Hiller Posted July 2, 2006 Author Members Share Posted July 2, 2006 If things in the industry don't change, there may not be an industry for the trade mags to report on......... Well, I wouldn't say it's that bad, but it's not good right now, either Link to comment Share on other sites More sharing options...
Members NITEFLY182 Posted July 2, 2006 Members Share Posted July 2, 2006 I doubt the industry will disappear. The world cant operate without music. Link to comment Share on other sites More sharing options...
Members cusackmusic Posted July 2, 2006 Members Share Posted July 2, 2006 I've been saying it for years! If you keep buying the cheap crap out there, then it's going to put a big hurt on the music industry. Too many people buying the cheap crap, trying to force the prices lower. Then when they get too low, companies go out of business, because they can't maintain those low margins forever. I told you, I told you! Link to comment Share on other sites More sharing options...
Members Jon Hiller Posted July 2, 2006 Author Members Share Posted July 2, 2006 Originally posted by cusackmusic I've been saying it for years! If you keep buying the cheap crap out there, then it's going to put a big hurt on the music industry. Too many people buying the cheap crap, trying to force the prices lower. Then when they get too low, companies go out of business, because they can't maintain those low margins forever.I told you, I told you! I think it's more than just that, but that's a big part of it, for sure. Music used to be one of the main pastimes for a family to do in their free time, now we have playstation/gamecube/xbox/etc., nearly every household has one or the other. This doesn't help, nor does it help our kids stay in shape, either. I'm guilty of it too, we have a gamecube, although my kids very rarely spend more than an hour at a time on it. Gas prices aren't helping right now, either. But yeah, the influx of cheap stuff, and the chains always demanding lower pricing of the stuff is a huge cause of it. I hope some of the industry bigwigs wake up to it before it's too late. Link to comment Share on other sites More sharing options...
Members Jon Hiller Posted July 2, 2006 Author Members Share Posted July 2, 2006 bump for the morning crowd..... Link to comment Share on other sites More sharing options...
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