Guitar Center has filed for Chapter 11 bankruptcy along with efforts to restructure and refinance the company.
Even before the pandemic happened and the shutdown began, online retailers such as Sweetwater became direct and fierce competitors with Guitar Center. Still, the nation’s largest retailer of music instruments expects to bounce back from bankruptcy by the end of the year. Guitar sales are apparently soaring as more people are finding time to explore musical hobbies — and Black Friday is just around the corner.
According to a report from Billboard, the newly approved restructuring support agreements (RSA) aims to slash Guitar’s Center $1.3 billion-dollar debt by approximately $800 million. Also according to Billboard, that number includes $375 million in Debtor-In-Possession financing and $335 million in new senior secured notes.
Guitar Center CEO Ron Japinga explains via press release:
This is an important and positive step in our process to significantly reduce our debt and enhance our ability to reinvest in our business to support long-term growth. Throughout this process, we will continue to serve our customers and deliver on our mission of putting more music in the world.
Across the US, Guitar Center currently owns 300 flagship stores and 200 Music & Arts stores, which specialize in band and orchestral instruments.
Shop Guitar Center here.
Source: Billboard