And the Woodwind and Brasswind Story Deepens

Article published Jan 25, 2007
Woodwind auction is postponed
Company is still up for grabs after Steinway pulls bid.

ED RONCO
Tribune Staff Writer

SOUTH BEND -- Hang in there for a minute and see if you can follow this:

The Woodwind & The Brasswind, based on South Bend's northwest side, filed in November for Chapter 11 bankruptcy protection.


California-based Guitar Center offered to buy it for about $37.1 million.


In came Massachusetts-based Steinway, with an offer of $40.5 million.


Last week, Steinway said the corporate equivalent of "nevermind," and withdrew its bid.
Wednesday, Guitar Center placed another bid, for less than its original offer.


Got it so far?

Good.

What was supposed to be an auction Wednesday for the assets of Woodwind & Brasswind turned instead into an legalistic blow-by-blow of the sale process for the musical instrument seller.

Woodwind & Brasswind is considered to be among the largest sellers and distributors of musical instruments in the nation.No bids were received for the company in time for Wednesday's auction. The deadline was 4 p.m. Monday.

That means the company is still up for grabs and a new bid is on the table from Guitar Center, said Chad Gettleman, a corporate attorney for Woodwind & Brasswind owner Dennis Bamber.

Guitar Center spokesman Evan Goetz declined to comment or confirm whether a bid had been placed.

It was too early to say whether the Guitar Center bid is acceptable.

Steinway called off the deal because of a "failure of certain conditions necessary to close the transaction," the company said in a Jan. 16 statement.Those conditions were "alleged misrepresentations in the closing conditions," said Chad Gettleman, corporate attorney for Woodwind & Brasswind owner Dennis Bamber.

Bamber "fully disputes" those accusations, Gettleman said, and believes Steinway's termination of the deal was "improper."

A sale hearing is set for 10 a.m. on Tuesday.