December 20, 2006, 12:00 AM

Steinway Musical named lead bidder for The Woodwind & The Brasswind

Steinway Musical Instruments Inc. has been named the lead bidder in the auction for bankrupt music retailer The Woodwind and The Brasswind, resulting in The Guitar Center terminating an earlier agreement to buy the retailer’s assets.

 

Steinway Musical Instruments Inc. has been named the lead bidder in the auction for bankrupt music retailer The Woodwind and The Brasswind, resulting in The Guitar Center terminating an earlier agreement to buy all the retailer’s assets.

A bankruptcy judge appointed Steinway’s offer of approximately $40 million as the stalking-horse bid for the auction scheduled for Jan. 24. A stalking-horse bid is the initial bid on a bankrupt company’s assets from a buyer selected by the company, and allows the company to avoid lower bids.

The Woodwind & The Brasswind filed for Chapter 11 bankruptcy in November after losing a lawsuit.

“The Woodwind & The Brasswind was a growing, profitable business before its recent issues,” says Dana Messina, Steinway CEO. “There is a great deal of work to do between now and the auction, but we believe this is an undervalued asset which can add to the profitability of our company.”

Guitar Center, No. 50 in the Internet Retailer Top 500 Guide to Retail Web Sites, had planned to operate The Woodwind & Brasswind as part of Guitar Center’s Musician’s Friend subsidiary.

Steinway Musical Instruments is a manufacturer of musical instruments.

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