Guitar center has filed for bankruptcy and tried to restructure and refinance the company.
Even before the pandemic happened and the shutdown began, online retailers like Sweetwater became direct and fierce competitors of the Guitar Center. Still, the nation's largest musical instrument retailer expects to recover from bankruptcy by the end of the year. Sales of guitars are apparently increasing as more and more people find time to engage in musical hobbies – and Black Friday is just around the corner.
According to a report by Billboard, the newly approved Restructuring Assistance Agreements (RSA) are aimed at reducing Guitar & # 39; s Center's $ 1.3 billion debt by approximately $ 800 million. According to Billboard, that number also includes debtor-in-possession financing of $ 375 million and new senior secured notes of $ 335 million.
Ron Japinga, CEO of the Guitar Center, explains in a press release:
This is an important and positive step in our process to significantly reduce our debt and improve our ability to invest in our business to support long-term growth. During this process, we will continue to serve our customers and fulfill our mission to bring more music to the world.
In the United States, the Guitar Center currently has 300 flagship stores and 200 Music & Arts stores that specialize in band and orchestral instruments.
Here you can shop in the Guitar Center.