Guitar Center in trouble

Lots of chatter this morning about the dire financial straits of Guitar Center. The word "bankruptcy" is being tossed around. Do a Google/Bing search for Gutiar Center news... I haven't read any sources that I'm familiar with but there are multiple sources reporting the same story.

Originally Posted by: john of MT

Lots of chatter this morning about the dire financial straits of Guitar Center. The word "bankruptcy" is being tossed around. Do a Google/Bing search for Gutiar Center news... I haven't read any sources that I'm familiar with but there are multiple sources reporting the same story.

They've been fighting this for a while now. Their credit rating was downgraded a few months ago which put them in as higher interst risk when borrowing and they've already got a lot of debt. The bankruptcy is a matter of whether it is a to liquidate or reorganize (Chapter 7 versus Chapter 13). If Guitar still makes enough money to stay solvent after reorgaization, they'll be doing a chapter. You actually aren't allowed to file Chapter 7 if you have a reasonable means to pay off the debt with different terms.[br][br]Having never been through bankruptcy, that's about as much as I know but I think it is likely they'll be Chapter 13 with a large debt cap to overcome.

Just my thoughts...then again, I have nooooo idea....

It's ashame. I don't like it when any business is having trouble. I have two of them within 15 miles of me. The service is lousy, the guitars on show are never restrung and many of the salespeople are clueless, but not all. I hope they don't go under and they learn their lesson on merchandise and customer support. Until then, people will continue to try the guitars at GC and then buy online.