Steinway terminates agreement to acquire The Woodwind & The Brasswind

Steinway Musical Instruments Inc. has terminated its Dec. 15 agreement to acquire bankrupt music retailer The Woodwind & The Brasswind, saying due diligence showed certain conditions could not be met to close the transaction.

The Woodwind & The Brasswind filed for Chapter 11 bankruptcy protection in November after losing a lawsuit. On Dec. 15, Steinway signed an agreement to acquire substantially all the assets of the music retailer. A judge appointed Steinway’s bid of about $40 million as the stalking-horse bid for the Jan. 24 auction of the bankrupt company’s assets.

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 termination of the agreement is subject to court approval, Steinway says.

The Woodwind & The Brasswind is No. 317 in the Internet Retailer Top 500 Guide to Retail Web Sites. Woodwind & Brasswind’s Internet marketing manager Cory Nielsen, will speak at Internet Retailer Conference & Exhibition, June 4-7 in San Jose, in the pre-conference marketing workshop, Harnessing the Power of Search Engines: Mastering the Complexities of Pay per Click and Optimization, June 4, 9-10:30 a.m.