RIP guitar-center.....

Discussion in 'The Backstage' started by Paruwi, Nov 17, 2020.

  1. Paruwi

    Paruwi Kraut-Rocker

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    https://consequenceofsound.net/2020/11/guitar-center-officially-filing-bankruptcy/

    Guitar Center Is Officially Filing for Bankruptcy
    The retailer hopes to reduce debt by $800 million to stay afloat
    by Jon Hadusek
    on 2020-11-17T16:07:59+00:00" title="This date and/or time has been adjusted to match your timezone">November 17, 2020, 5:07pm

    Following a report last month that Guitar Center was considering filing for bankruptcy, the instrument retailer has indeed decided to go that route in an effort to save the company.

    According to a press release, Guitar Center will file for Chapter 11 bankruptcy, striking a deal with key investors and lenders that would reduce debt by $800 million and “best position the company to return to its growth trajectory prior to COVID-19.” The agreement also stipulates that “all financial obligations to vendors, suppliers, and employees will continue to be paid in full in the normal course.” In short, the company intends to move ahead with business as usual following the agreement.

    Guitar Center stated that it reached the restructuring deal with the company’s controlling owner, a fund managed by private equity firm Ares Management (which acquired a stake in Guitar Center in 2014, per USA Today). The company also received support for its deal from new investors Brigade Capital Management and a fund managed by The Carlyle Group and other lenders.

    “Today we announced a very important and positive step forward to ensure the long-term financial strength of Guitar Center,” CEO Ron Japinga said in the press statement. “This agreement will allow us to significantly reduce our debt and reinvest in our business in order to better serve our customers and deliver on our mission of putting more music in the world. With ten consecutive quarters of growth prior to the impact from COVID-19, we have been pleased with our resilient financial performance during these challenging times created by the pandemic.”

    The pandemic has been especially tough for Guitar Center. While the company operates a robust e-commerce site — including a transparent “used” section, allowing customers to browse the secondhand stock of any store — Guitar Center’s emphasis has always been on their many brick-and-mortar shops. Operating 269 locations, it’s arguably the most ubiquitous physical music gear store in the US.

    But as a “non-essential” business, retailers like Guitar Center were forced to close or significantly limit operations during lockdown. Similar restrictions could return as COVID-19 case counts surge across the country. The bankruptcy announcement stressed that “business operations will continue uninterrupted,” but, as we’ve seen across the music industry at large, circumstances remain uncertain during the pandemic.

    Editor’s note: During the pandemic, Consequence of Sound is supporting independent musicians by donating a portion of all proceeds from our webstore to the MusiCares’ COVID-19 Artist Relief fund. Grab yourself a face mask, T-shirt, hoodie, or even some CBD.
     
    soulman969, Lancpudn and Supersonic like this.
  2. Raiyn

    Raiyn Well-Known Member

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    [​IMG]

    Haven't bought anything from them in years, especially not after "sign or be fired". As long as Sweetwater and Sam Ash are good, then so am I.
     
  3. Steven Westberg

    Steven Westberg Active Member

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    Guitar Center actually ripped off $50 from me by absorbing the money from a gift card my son gave me. Not expired, just gone.
    I’m kind had it with them and I’m with Raiyn , Sam Ash works for me.
    I got my black strat there pretty reasonable because it was unboxed. But they had it in stock, and I wanted that particular model and the price was great. Been to reverb now a few times too.
    Won’t be using GC anymore. Sad to say that because I was at the Ventura Blvd GC store playing acoustics and Ringo came in and bought a big pile of drum sticks. He hung around for fifteen minutes talking and signing autographs. But it is in Sherman Oaks, with lots of rich music industry folks around. Same stuff happens at Norm’s Rare Guitars just west from there.
     
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  4. Otto99

    Otto99 Well-Known Member

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    And @Raiyn, right after you posted this I got an email from them about the new Epi reissue acoustics! The Hummingbird looks nice.
     
  5. BGood

    BGood Well-Known Member

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    They had a good used dept.
     
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  6. guitarlover

    guitarlover New Member

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    I received this email last week:


    Thank you for being a loyal customer of Guitar Center. We genuinely appreciate your business.

    I'm pleased to share that the Guitar Center Company has announced an agreement to strengthen our financial structure which will allow us to serve you better for the long term. During this time there is likely to be press coverage, so we wanted you to hear from us what to expect.
    • Our stores, e-commerce, lessons and call centers are open and available to you as we continue to operate our business as usual.

    • We will continue to serve your needs as usual, therefore, customer service, financing with your GC Card and Pro Coverage remain unaffected.
    To facilitate this financial process, we will voluntarily file for restructuring under Chapter 11 which we expect to complete quickly. During this time, we will continue all of our operations without interruption.

    Most importantly, we are staying focused on helping more customers make music. We continue to have the gear you want and need, with new gear arriving regularly and we are here to support your holiday shopping needs as we have exciting holiday promotions ready for you.

    If you have questions or concerns please feel free to email us at service@guitarcenter.com or call us at 866-498-7882.
    [​IMG]
    Ron Japinga
    Chief Executive Officer
    The Guitar Center Company
     
  7. DigitalDreams

    DigitalDreams Well-Known Member

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    This
     
  8. Raiyn

    Raiyn Well-Known Member

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    "Them"? Sweetwater? Sam Ash?
     
  9. Otto99

    Otto99 Well-Known Member

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    GC. Thought it was obvious. Perhaps not.
     
  10. Belle

    Belle New Member

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    I bought my first Epiphone at the Sherman Oaks/Ventura Blvd GC back in '99 - a black LP Jr. (which I still have).
     
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  11. Jam Handy

    Jam Handy Member

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    It's been pending for years... I hate this freaking store and the way they do business... they give a black eye to the music business... I hope they die and stay dead...
     
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  12. Supersonic

    Supersonic Well-Known Member

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    Sounds like you must have gotten a setup there from a 'tech' :rofl:
     
  13. guitarlover

    guitarlover New Member

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    I’ve never had a single problem at my local GC. Cool people worked there, annoying salespeople never chased after me trying to sell me anything (like online retailers with their incessant messaging) they always grabbed any guitar I wanted, and could play any amp or pedal. The acoustic room has always been a joy to play in. Never really understood all the hate.

    There’s something really nice about driving over to guitar center after a long day and trying out the latest gear. Maybe noodling on a synth or banging a few drums too!

    They’re not going out of business anyways they’re just restructuring.
     
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  14. Steven Westberg

    Steven Westberg Active Member

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    A big cool store!
     
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  15. guitarlover

    guitarlover New Member

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    And then people complain about GC killing mom and pops, while they do all their shopping online! lol
     
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  16. Stillhouse

    Stillhouse Member

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    Down here GC is the only place within a couple hundred miles that carries Gibson or Epiphone, so of they close up shop it'd be a bummmer.
     
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  17. Raiyn

    Raiyn Well-Known Member

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    I've never said that.

    Also, given my schedule and literally everything else in the world right now, ya damn right I'm ordering my shizz online! Sweetwater earned my business years ago, and Sam Ash is still my favorite local store.
     
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  18. soulman969

    soulman969 Well-Known Member

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    As expected and the Chapter 11 may allow them to get their vendor issues resolved enough so that product that's been missing will once again appear "on the shelves".

    I do and have done a significant amount of business online with Musician's Friend and although we do have a well stocked local super store I really don't find much need for it myself other than as a potential shipping location for any used gear I may purchase. Best to have it shipped there and inspect it there before committing to take it home.

    It's not so much that GC is "too big to fail" as it is that their lenders would rather kick the can down the road hoping GC can recover well enough to get paid off rather than forcing a liquidation that would get them only a small portion of what they're owed.
     
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  19. guitarlover

    guitarlover New Member

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    No Sam Ash here, but I have been to a few. Great stores!

    I’m a fan of all music stores really, might be my favorite shopping experience, especially when we’re not expected to buy anything.

    Im not averse to tolerating insufferable fools such as a few occasional employees; I’ve a wee bit of backbone after all, and when surrounded by walls of musical instruments I really can’t be bothered by any of them!

    GC has been one of the safest stores to go during Covid- everything re. safety taken very seriously. I’ve only gone a few times and was never worried.
     
  20. soulman969

    soulman969 Well-Known Member

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    And I would agree about Sam Ash.

    The only experience I've had with them is purchasing a used G&L bass from a store in Florida. The rep I dealt with and the store manager were both highly professional. We negotiated a fair price, it shipped that day and when it arrived it appeared to be NOS not used with plastic still on the control and battery covers.

    They even arranged for a Sam Ash card and a 0% interest 6 month deal and no sales tax. I will order from this same rep and Sarasota, FL store again. They've earned my business by doing what any truly good business should do. Few others except for Sweetwater and for me zZounds rise to that same level.

    I'm not unhappy to see GC doing what they can to work their way out of the dilemma of the debt they were saddled with by Bain now that Bain no longer owns them. I would not miss GC as much per se but I've always gotten good service and attention from MF and if GC fails they would go down as well.
     

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