Guitar Center bankruptcy

GCRoberts

Well-known member
Just got an email from Guitar Center stating that they are filing for bankruptcy. Haven't they filed chapter 11 a few times in the past?
 

Ransan

Senior Member
I got one from them and Musicians Friend both saying the exact same thing... also saying they are realigning their financial structure, not sure how many times this is/will be. But it’s unfortunate.
 

someguy01

Well-known member
They blew it on the ecommerce front and have been playing catchup to Sweetwater. The pandemic and subsequent drop off in "in-person" customers hurt their cash flow and they missed an interest payment. This is standard fare, but it may be the beginning of the end for the physical GC store. MF now has the GC used listings and it wouldn't take much to move everything there.
It's the commercial real estate world that's gonna take the biggest hit, theres a lot of.closed businesses.
 

felonious69

Well-known member
Word of mouth is a powerful thing.
I have heard a LOT of negative here and elsewhere regarding GC.
I have heard (and posted) a LOT of positive...AMAZINGLY POSITIVE here and elsewhere regarding Sweetwater.
There is really nothing that I can't wait two days for, so for me, Sweetwater is it.
We have a GC here, but I can wait.
 

Darth Vater

Senior Member
I wouldn't shed a tear if they went south. The one near me is pretty awful. I have good relationships with some online retailers that aren't big box stores and enjoy the personalized service I get from them. It helps that I live a couple blocks from DFD too. (y)
 

calan

Silver Member
I’m actually kind of surprised. I had understood that sales had actually substantially increased since the stores reopened. I guess it wasn’t enough to offset that initial hit.

That being said, my local GC has exceptional customer service, and I have personal relationships with several of the staff there. Several employees have been there for more than 10 years, and some worked at the small local shops before their demise.

I order from Sweetwater on occasion, and could even make a 2-3 hour drive to their physical location if I chose. However, I’d still feel for those who are losing their job, and as limited as GC was, its the last place in my metropolitan area with any legitimate inventory.
 

cbphoto

Gold Member
The GC ten miles from here has good people, and a fair amount of biz. If they closed up, there’d be only one music store remaining in town, and that store caters to school bands & lessons (a good thing) but has a meager drum selection.
 

GruntersDad

Administrator - Mayor
Staff member
I got one from them and Musicians Friend both saying the exact same thing... also saying they are realigning their financial structure, not sure how many times this is/will be. But it’s unfortunate.
Is this saying Musicians Friend is also filing, or MF was reporting for Guitar Center
 

wraub

Well-known member
Guitar Center oversees various subsidiaries including Musician's Friend, Music & Arts, GuitarCenter.com, LMI, Giardinelli, Musician.com, Private Reserve Guitars, Woodwind and Brasswind, and Music 123, and used to own Harmony Central until its April 2015 sale to Gibson.


They are currently owned by these guys-

edit- in looking up this info, I found two unrelated news stories about the demise of GC... one from 2018 and one from 2016. ;)
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Ransan

Senior Member
Is this saying Musicians Friend is also filing, or MF was reporting for Guitar Center
Both my emails from both companies are signed by Mr. Japinga CEO for Guitar Center.
So I take it the same conglomerate owns the respective enterprises.
 

wildbill

Platinum Member
The GC near me is great.
A couple of pretty knowledgeable guys there (as well as some not so), and I've gotten some really good deals from there.
It's one of the last places left around here to look over and try stuff out in person. It also has a generous (overly so IMO) return policy.

Sales and profits are going gangbusters:
2.3 Billion revenue - up 4.5%
#206 - America's largest private companies in 2019
11,000 employees

There are often more complicated background issues involved with restructuring.
I have little doubt that GC will continue to grow.
 
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MrInsanePolack

Platinum Member
Musicians Friend is a subsidiary of Guitar Center.
Guitar Center oversees various subsidiaries including Musician's Friend, Music & Arts, GuitarCenter.com, LMI, Giardinelli, Musician.com, Private Reserve Guitars, Woodwind and Brasswind, and Music 123, and used to own Harmony Central until its April 2015 sale to Gibson
It's all Bain Capitol, as well as many many many other businesses.
 

wildbill

Platinum Member
It's all Bain Capitol, as well as many many many other businesses.
Several year ago when GC bankruptcy was brought up,
I linked to an article stating that Bain was using GC profits to pay off debts from some of their other companies.
Complicated behind the scenes juggling, I guess.
 

MrInsanePolack

Platinum Member
Several year ago when GC bankruptcy was brought up,
I linked to an article stating that Bain was using GC profits to pay off debts from some of their other companies.
Complicated behind the scenes juggling, I guess.
I'm not surprised. A major investment firm juggling accounts to protect their investments? Sounds like business as usual to me.
 
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