Guitar Center Begins Bankruptcy Procedures


Guitar Center, the latest retail company to suffer financial losses during the pandemic is filing for Chapter 11 bankruptcy.

 The company will be funded through bankruptcy by its main owner Ares Management Corporation, equity investor Brigade Capital Management a fund managed by the Carlyle Group. 

The Guitar Center is a 61-year old company with 269 locations mainly in malls. It is the biggest musical instrument retailer in the nation. It tried to avoid closing down many of its stores but was unable to do so before the pandemic as footfalls were already decreasing in malls. The pandemic made bankruptcy inevitable.

 “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,” Guitar Center CEO Ron Japinga said in a statement.

 Although the company expects to stay afloat during bankruptcy, it may not be able to take advantage of holiday shopping this year as fewer people will be spending less on gifts this holiday season. A Gallup poll said that 28% of Americans had said that they will spend less on gifts this year. This percentage is the highest since a similar poll in 2012.

 “We will continue to serve our customers and deliver on our mission of putting more music in the world,” Japinga said. He also said that the company expected to complete the process by the end of 2020.

Follow us on Google news for more updates and News


This content is being provided to you for informational purposes only. The content has been prepared by third parties not affiliated with CWEB Inc, a business. This content and any information contained therein, does not constitute a recommendation by CWEB to buy, sell or hold any security, financial product or instrument referenced in the content. This information neither is, nor should be construed as an offer, or a solicitation of an offer, to buy or sell securities by CWEB Inc. CWEB Inc. does not offer or provide any opinion regarding the nature, potential, value, suitability or profitability of any particular investment or investment strategy, and you shall be fully responsible for any investment decisions you make, and such decisions will be based solely on your evaluation of your financial circumstances, investment objectives, risk tolerance, and liquidity needs.

Unless stated otherwise, the web content provided by the CWEB family of companies is for educational purposes only. The information and tools provided neither are, nor should be construed, as an offer, or a solicitation of an offer, to buy or sell securities by CWEB Inc. or its affiliates. Unless stated otherwise, no information presented constitutes a recommendation by CWEB Inc. or its affiliates to buy, sell or hold any security, financial product or instrument discussed therein or to engage in any specific investment strategy.

Full Disclaimer