Guitar Center, the largest retailer for musical instruments in the US, has filed for bankruptcy -

[TopCat]

Guitar Center, the largest retailer for musical instruments in the US, is the latest company to file for bankruptcy in the wake of the coronavirus pandemic.

The retailer announced Saturday it had filed for Chapter 11 bankruptcy protection "to significantly reduce our debt and enhance our ability to reinvest in our business." Guitar Center aims to emerge from bankruptcy before the end of the year, the company said.

The possibility of Guitar Center's bankruptcy filing was first reported in October by Bloomberg.

According to the company's bankruptcy filings, Guitar Center has been forced to seek protection in part due to "the economic upheaval created by the persistence of the Covid-19 pandemic." The company also faces a "significant debt burden" standing at roughly $1.3 billion in debt, the New York Times reports.

Guitar Center is one of the retailers hit hard by the coronavirus pandemic: The retailer told the New York Times in March it had closed 75% of its stores during nationwide lockdowns. Social-distancing efforts and stay-at-home measures have forced storefronts across the US not deemed essential businesses to temporarily close.

With nearly 300 storefronts across the US, Guitar Center heavily relies on in-person sales to stay afloat. Although the company has an online store for purchasing musical instruments, it's been forced to offer alternatives — like virtual music lessons — during the pandemic to try to reverse its economic downturn.

According to its bankruptcy filing, Guitar Center said it had secured $165 million in new equity investments, and intends to reduce its debt by $800 million. The company will continue to pay its employees and operate its storefronts as normal during the Chapter 11 process, Guitar Center said.

Guitar Center is not the only retailer to have to file for bankruptcy during the pandemic. Both Century 21 and Lord & Taylor filed for bankruptcy this year, and made the decision to go out of business and close their storefronts. Other retailers like Muji, Brooks Brothers, JCPenney, and Pier 1 have also filed for bankruptcy in recent months.

Guitar Center, the largest retailer for musical instruments in the US, has filed for bankruptcy

The company, whose business suffered during the coronavirus pandemic, intends to stay in business as it goes through the bankruptcy process.

www.businessinsider.com

 

[Just A Butt]

I would have expected them to be one of the few to still be moving merch, what with everyone starting new hobbies and all.

RIP

 

[TheImportantFart]

Now where are douchey teenagers going to hang out and play "Stairway to Heaven" all afternoon?

 

[northstar747]

oh no

 

[Analog Devolved]

I don't think it helps them that basic guitar prices have more than doubled in 10 years. Epiphone went from making guitars in Indonesia to making them exclusively in China with cheaper parts and charging way more for them.

 

[Bland Crumbs]

WuFlu may have knocked them down but Amazon and Sweetwater killed GC. I suspect someone will bail them out and reorganize the company. What they should have done a long time ago was scale down their stores and made it more convenient for people to get in for consumables(strings, reeds, etc) and out quickly. A trip to GC for strings always turned into a slog.

 

[Some JERK]

Good. They've been screwing the pooch for years. Their customer service is shit and their shipping practices are awful. I broke my rule about never ordering from them because they had a deal on a guitar that I couldn't pass up, so I ordered it as a gift for a friend. It came in a thin box with zero protection beyond a cardboard support for the neck/headstock. The box arrived mangled and half opened and there were several dents and a dime-sized chip in the finish. When I contacted GC about it they took 3 weeks to get back to me and basically said "Your problem. File a claim with UPS."

Instead, I filed a claim with my CC company and they made them take it back. I then bought the same guitar from Sweetwater, who packed it perfectly and of course, gave me candy as well. I had to pay $50 more for it but it was worth it to get something that didn't arrive destroyed.

Couldn't happen to a more deserving company. I hope their largest creditor takes over, recoups their investment and then lights a match on their way out the door.

 

[oldTireWater]

I know they were the "bad guy" for a long time, but lately they've been the only brick and mortar option. This sucks.

I felt comfortable ordering used gear from them, because I could return it to the local store if I didn't like it.

 

[Turkey Twister]

Aww, I liked going into the local one and fucking with different instrument settings with friends. It was fun to mess with their shit.

 

[Some JERK]

I know they were the "bad guy" for a long time, but lately they've been the only brick and mortar option. This sucks.

I felt comfortable ordering used gear from them, because I could return it to the local store if I didn't like it.

From what I've seen lately, they're not such a good brick and mortar option anymore. Larger guitar manufacturers aren't shipping guitars to them due to their financial troubles and unpaid accounts. I've seen several recent pictures of Guitar Centers with virtually empty walls.

 

[Angry Shoes]

Damn they're closing Sweetwater's showroom? That sucks.

GC sucks cocks. The only good part about them was their return policy. Buy online or support your local music shop.

 

[Molester Stallone]

The only good thing I found about GC was shopping their used inventory online. Over the years I've scored a number of really nice guitars at more than fair prices. I grabbed a couple of great amps as well. The closest GC to me is an hour away and I really don't have any other options nearby. Sweetwater is my usual go to though on new gear.

 

[Pissmaster]

All the independent music shops had better prices on just about everything than Guitar Center. They even gouged on the little shit.

 

[Drain Todger]

Brick and mortar is dead! All hail BezosBot! All hail!

 

[albert chan]

Funny how Guitar Center files for bankruptcy, but Sam Ash is still alive and kicking it.

 

[kcbbq]

Damn they're closing Sweetwater's showroom? That sucks.

GC sucks cocks. The only good part about them was their return policy. Buy online or support your local music shop.

The luthier stand in my local GC is/was staffed by a lutheiry shop that would be otherwise be a pain in the ass to use because they're 60 miles away, and they are phenomenal. It's great to have them 8 miles away. I'd miss that.

I'd make the drive if I had to, I guess. I'm willing to make the drive to Savage Amps to have my Princeton Reverb serviced even though they have drop off service at Willy's American....

 

[Henry Bemis]

then bought the same guitar from Sweetwater, who packed it perfectly and of course, gave me candy as well.

Sweetwater's customer service is so proactive, it's unnerving.

 

[Megaroad 2012]

All the independent music shops had better prices on just about everything than Guitar Center. They even gouged on the little shit.

Got better equipment from a local pawn shop than I ever did with GC.

 

[Nobue]

I once had some work done on a bass, and they put the four lowest strings of a 5-string on my 4-string. The neck was bent at a sharp angle, and I nearly got in a shouting match with the technician because of his horrendous attitude.

They also tried limiting their stores to one customer at a time for a long time, and want to act like massive cunts over masks. I can't say I'm not gloating a teeny bit.

 

[Some JERK]

Sweetwater's customer service is so proactive, it's unnerving.

Yeah every time I put my email on the list to be notified when something is back in stock I get a phone call. I want to complain about it but it's actually pretty helpful because I usually have a question about whatever it is anyway.