Clifford Chance has advised Mexico-based Gonher Music Center on its acquisition, through newly-formed U.S. affiliates, of storied U.S. music retailer Sam Ash. The 42-store retail chain filed for chapter 11 bankruptcy protection in May 2024, citing declining sales as customers shifted to online shopping during the COVID-19 pandemic, and subsequently launched a court-supervised sale process under Section 363 of the Bankruptcy Code.
Following a competitive auction in which Gonher Music Center emerged as the successful bidder, the bankruptcy court approved the sale, and affiliates of Gonher Music Center acquired substantially all the assets of its e-commerce platform and wholesale businesses. This transaction closed in July 2024.
The cross-practice team advising Gonher was led by partner Brian Lohan (restructuring and insolvency) and senior associate Stephanie Kilmer (corporate and M&A). The wider U.S. team included partners Michelle McGreal and Maja Zerjal Fink (restructuring and insolvency), Kevin Lehpamer (corporate and M&A) and Violetta Kokolus (intellectual property), along with associates Madelyn Nicolini (restructuring and insolvency) and William Wilcox (corporate and M&A). Beijing corporate and M&A partner Yufei Liao and associate Jiahong Cai and trainee Ruiqi (Rickey) Yu advised on the Chinese law aspects of the transaction.
The sellers were advised by investment bank Capstone Partners, restructuring advisers SierraConstellation Partners and law firm Cole Schotz.
