Guitar Center imminent death?

Discussion in 'Guitars in General' started by Johnny2013, Feb 3, 2015.

  1. Johnny2013

    Johnny2013 Member

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  2. nmiller

    nmiller Drowning in lap steels Silver Supporting Member

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    Such have been the rumors for, what... a decade now? More?
     
  3. Drumnbum

    Drumnbum Member

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    True, but at some point you have to pay the piper. I have a gut feeling that that time is very close.
     
  4. partytrain

    partytrain Member

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    Some guy's blog predicting the end of GC? Pass...
     
  5. redeyedjim

    redeyedjim Silver Supporting Member

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    Well, Eric Garland has certainly been consistent in beating this particular drum, so to speak. Would be interesting to see what another set of eyes can make of the same data, or if anyone with more knowledge can speak to his main points? It does sound like a death spiral. It wouldn't exactly be a surprise that GC's debt is crippling, its finances shaky, and its management looking for a way out that returns some value to its bond holders.
     
  6. bgmacaw

    bgmacaw Member

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    Ouch!!!

    An "undertaker" CEO.

    Hopefully the going out of business sale will be spectacular.
     
  7. sleepingtiger

    sleepingtiger Supporting Member

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    I better use my gift card, huh???

    Tony
     
  8. Stormin' Norman

    Stormin' Norman Member

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    Guitar Center is definitely struggling financially, but take a look at other blog posts from this "intelligence analyst" and take this with a grain of salt. He's far from a financial analyst
     
  9. slipbeer

    slipbeer Supporting Member

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    A man who didn't know a Marshall Plexi from a nuclear submarine tried to help me the last time I was in a GC.
     
  10. IRG

    IRG Member

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    Pics of that submarine please...
     
  11. redeyedjim

    redeyedjim Silver Supporting Member

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    Well, it was a vintage nuclear submarine, albeit Soviet made. But with the tall font...
     
  12. ufo~

    ufo~ Member

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    Damn, that's bad. And yet they went ahead with the Time Square fiasco after that. They really are doomed. Corporate greed at its ugliest.
     
  13. ohiomatt33

    ohiomatt33 Member

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    "Got a great Class E vintage Nuke-u-lar sub in for ya. The Ruskie who owned this previously toured with Stalin they say.":D
     
  14. superrock

    superrock Silver Supporting Member

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    a friend of mine who was a devout employee and regional manager got smoked last week due to "corporate restructuring".... he hates eric garland for ringing the death knell all this time, but perhaps he was right... my friend had the GC koolaid and thought he was there for life...
     
  15. IRG

    IRG Member

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    "the corporate entity known as Guitar Center, Inc. is in the midst of irreversible collapse dynamics and will cease to hold its position as the industry leader in the short-term. In the mid-term, the company may cease to operate as a going concern and will be reduced to a group of trademarks, service marks and patents that will be sold to a buyer with considerably different plans for the company. Its days as the national industry leader are over."

    Well that may be true. Not sure anyone else on a national scale is going to be able to step up to the plate though.

    And this might be a good thing. Why do we need a big conglomerate anyways, when local/regional stores who know their client base better anyways, and can usually offer better service. GC's website is also pretty poor. Sweetwater puts them to shame in many ways. You can almost smell the fact, that private equity has been trying to squeeze out any profit they can, before this whole thing collapses. I would agree with the author overall, it's not if, but when.
     
  16. Roxy

    Roxy Member

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  17. Jon Silberman

    Jon Silberman 10Q Jerry & Dickey Gold Supporting Member

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    I like my local GC and will be sad to have it go.
     
  18. IRG

    IRG Member

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    "Here’s what this really means: it’s the end of big box retail, an irrational addiction to growth, and the scourge of unregulated structured finance. For a few years, unwise urban planning and unregulated banks created a new bubble in the American suburbs. People bought homes they could not afford and turned their houses into lines of credit. This swindle eventually brought the economy to its knees and has taken most a decade to regain some state of uneasy equilibrium. Still, it was particularly stimulating to a certain type of retail that also depended on constant growth and financial trickery. The objective truth is that the growth of the last decade was financed by banking fraud, and that financial trickery of this sort only fools people in the short-term. Eventually, you must have a product people demand, sold by competent people who care about the business, financed in a way that makes sense."

    I think he's spot on here.
     
  19. morgan918

    morgan918 Member

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    I'd be sad to see it go. It's like the end of Borders - I'd rather buy my books elsewhere, but you still don't want to see the store go away. I hit GC for easy things like cables or strings, and I've bought some great guitars there over the years. Plus they have good hours, unlike a lot of the independent stores.
     
  20. HurricaneJesus

    HurricaneJesus Member

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    I also like my local GC. Have gotten some good deals there...and done some hilarious people-watching.
    Predicting their failure reminds me of the Tennessee fans that have been predicting a win over the Florida Gators the last ten years. Every year is THE YEAR. Eventually it will be and they'll grin smugly and say 'SEE?????'
     

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