Doublereed Archive - Posting 000075.txt from 2006/12

From: "Dave Metzger" <dave_metzger9@-----.com>
Subj: [DR-L] Woodwind Brasswind
Date: Wed, 20 Dec 2006 01:27:47 -0500

From www.mmrmagazine.com:

The demise of the South Bend, Ind.-based dealership, which booked 2005 sales
of $136 million (down from $145 million in 2004), appeared to stem from the
outcome of a lawsuit involving former minority partners Stephen and Richard
Zapf. The Woodwind & The Brasswind had acquired Philadelphia-based Zapf
Music Stores, Inc. in 2002, with the former brick-and-mortar business
becoming the Internet-only marketer Music123. While Music123 prospered
following the deal with sales escalating from $20 million to $58 million
annually over the next three years, the relationship between the Zapf
brothers and Woodwind CEO Dennis Bamber soured, and both Zapfs were
terminated in 2004. The Zapfs then sued, Woodwind countersued, and the court
found in favor of the Zapfs in September to the tune of $9 million. In a
report published in the South Bend Tribune, Bamber said the bankruptcy
filing was necessitated to protect the company from the outcome of the
lawsuit. The court filing also cited the costs involved with closing a New
Jersey distribution facility and the opening of a new distribution center,
as well as an $800,000 expense related to software licensing and upgrades.

>Richard Ramey wrote:
>>This interesting bit of news was sent today on the contrabassoon list.
>>Does anyone know what the lawsuit, mentioned in the press release,
>>concerns?

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