Guitar Center in trouble


john of MT
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Joined: 10/08/09
Posts: 1,529
john of MT
Full Access
Joined: 10/08/09
Posts: 1,529
04/23/2018 5:20 pm

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.


"It takes a lot of devotion and work, or maybe I should say play, because if you love it, that's what it amounts to. I haven't found any shortcuts, and I've been looking for a long time."
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# 1
JeffS65
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Joined: 10/07/08
Posts: 1,602
JeffS65
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Joined: 10/07/08
Posts: 1,602
04/24/2018 4:44 pm
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....


# 2
Papa Rich
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Joined: 07/15/15
Posts: 89
Papa Rich
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Joined: 07/15/15
Posts: 89
04/24/2018 7:56 pm

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.


# 3

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