Just saw that Guitar Center is getting ready to file bankruptcy

[mooncobra]

The New York Times said they are over a billion in debt and just missed a 45 million dollar interest payment. It said they are preparing to file bankruptcy.

That would be wild if guitar center was actually gone. I haven’t bought an actual guitar from them in many years, just strings and such. Still, I stop in and look at gear once in a while, usually the vintage area.

 

[GibsonGeek]

First I’ve heard of this here at TGP.

 

[woodymq]

I see the biannual GC debt-default flower has bloomed again.

They've been on the cliff of bankruptcy so long, I can’t even keep count anymore.

 

[Shades of Blue]

Gibson filed too...remember that? They seem just fine now...

 

[mooncobra]

First I’ve heard of this here at TGP.

It showed up in my news feed earlier today.

 

[DRS]

Guitar Center is preparing for a possible bankruptcy filing.

It’s still possible that Guitar Center could avert bankruptcy, as it did earlier this year.

www.nytimes.com

 

[JDJ]

I wonder if they owe Fender a lot of money and, if so, if that would adversely affect Fender.

 

[PaisleyWookie]

I wonder if they owe Fender a lot of money and, if so, if that would adversely affect Fender.

Im sure they do, and it definitely would.

 

[ClickClack]

The New York Times said they are over a billion in debt and just missed a 45 million dollar interest payment. It said they are preparing to file bankruptcy.

That would be wild if guitar center was actually gone. I haven’t bought an actual guitar from them in many years, just strings and such. Still, I stop in and look at gear once in a while, usually the vintage area.

Please realize that filing for bankruptcy protection means finding a way to deal with overwhelming debt that you no longer believe you can pay off in full. It DOES NOT necessarily mean that your company completely "goes away." It says right there in the second paragraph of the NYT article posted by @DRS above that they are discussing "a plan that would involve the company filing for bankruptcy this year and emerging from it in early 2021."

I suspect that GC may very well have to shutter all stores for a set period, after which they would likely be able to reopen many stores in locations where they are reasonably certain they will bring in enough revenue, whereas the locations that had not performed well may never reopen.