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Miles Archer

(18,960 posts)
Sun Apr 22, 2018, 10:58 AM Apr 2018

Guitar Center reportedly facing "imminent bankruptcy" [View all]

Guitar Center, the largest chain of music equipment stores in the U.S., is reportedly facing “imminent bankruptcy." Digital Music News said that financial service firm Standard & Poor’s recently downgraded the business to CCC– status, indicating that a default event is expected in the near future.

With 269 stores across the nation, Guitar Center has a history stretching back to 1959, when it began as Organ Center then The Vox Center before a final name change in the ‘70s. Despite dismissing 180 employees in 2015, it’s carrying a debt of over $1 billion and narrowly avoided defaulting on repayments this month, which led to the downgrade. Another financial service company, Moody’s, warned investors: “The rating outlook remains negative.”

The crisis follows similar problems at Gibson Brands, Inc, the manufacturer of Gibson guitars. Earlier this year it emerged that urgent reconstruction was required to avoid its collapse. Last month it was reported that $560 million was needed to cover debt repayments by the summer, following a round of staff layoffs, and investors were pressuring CEO Henry Juszkiewicz to step aside in favor of a new management structure.

In an earlier interview, Juszkiewicz had argued that guitar businesses had struggled to recover from the 2008 financial crash, and said he’d been trying to persuade guitar stores to modernize their offerings. “I’ve been arguing with retailers for a long time that you have to be a place where [customers] can sit and take in the store, and be a destination that is friendly. If you walk into most music stores, there's nowhere to sit. Give me a break! Most stores aren't comfortable places. … t’s all about making the customer feel welcome, and helping them out by being knowledgeable. That's what the industry needs, because it doesn't have it. We have to get people involved in music, and offer them a helping hand.”

http://ultimateclassicrock.com/guitar-center-imminent-bankrupcty/
34 replies = new reply since forum marked as read
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fuck Eliot Rosewater Apr 2018 #1
The problem is that there is no place to sit? oberliner Apr 2018 #2
That would suck. Loki Liesmith Apr 2018 #3
Vultures - isnt this Bain capital? Dream Girl Apr 2018 #4
It would have to be some bullshit like this. Dave Starsky Apr 2018 #7
They'll probably merge it with something like PetSmart... KY_EnviroGuy Apr 2018 #10
Guitar Center to Be Acquired by Bain Capital for $1.9 Billion FarCenter Apr 2018 #9
Bain - as I recall they deliberately treestar Apr 2018 #16
That's exactly what they do. That's ALL they do. Dave Starsky Apr 2018 #20
That's the general idea, but the ploy is more complicated than that FarCenter Apr 2018 #24
then Ares Capital came in melm00se Apr 2018 #26
Uh-oh. That's my toy store. (n/t) Iggo Apr 2018 #5
Another brick & mortar store gone CountAllVotes Apr 2018 #6
The problem is licensing Miles Archer Apr 2018 #8
Thank you mshasta Apr 2018 #11
Is Bananas at Large still around? CountAllVotes Apr 2018 #17
Seems they are still around CountAllVotes Apr 2018 #19
GC Owns Musician's Friend as well OneBlueDotBama Apr 2018 #32
Sweetwater Sound... Adrahil Apr 2018 #21
Guitar Center owns Musicians Friend. Eko Apr 2018 #33
I read that the sales of electric guitars have been declining ismnotwasm Apr 2018 #12
There have been rumors of such for years. Someone will purchase what's left of them and salvage Hoyt Apr 2018 #13
This is another retail model that isn't paying attention to consumers... cbdo2007 Apr 2018 #14
And Epiphone is an affordable alternative to a Gibson... Adrahil Apr 2018 #22
Not surprising blake2012 Apr 2018 #15
Some place to sit. Yes! MineralMan Apr 2018 #18
Awesome! NT Adrahil Apr 2018 #23
What a great story Beakybird Apr 2018 #28
No more guitar heroes! nt USALiberal Apr 2018 #25
It had to happen. All of trump supporters are buying banjoes instead. tonyt53 Apr 2018 #27
Just Another Bain Capitol Success. OneBlueDotBama Apr 2018 #29
Good - as a player/collector for years, happy to see this DrDan Apr 2018 #30
Rock is not as popular w/youth as it once was. radius777 Apr 2018 #31
Pretty much every year Eko Apr 2018 #34
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