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I guess GC is going out of business again ...

Discussion in 'Bad Dog Cafe' started by Flat6Driver, Apr 15, 2021.

  1. Flat6Driver

    Flat6Driver Friend of Leo's

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    ...the just sent me the first catalog in a year. Guitar-a-thon is on!
     
  2. That Cal Webway

    That Cal Webway Friend of Leo's Silver Supporter

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    I got it too.
    Our local one, the acoustic room is 90% empty and the floor is over 50% on new, I'd say 75% less on used.
     
    Last edited: Apr 15, 2021
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  3. SRHmusic

    SRHmusic Tele-Holic Silver Supporter

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    This was posted just yesterday. Interesting discussion of their debt load.

    Edit- Some people post their local GC is empty of stock, and others say theirs is pretty full. I wonder if they are hanging on but wanting to close and sell the empty ones, holding the real estate until they can figure out what to do with it. Not sure what they own vs. lease.

     
  4. nojazzhere

    nojazzhere Doctor of Teleocity

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    I received a GC catalog a week or two ago. First one I've gotten in YEARS......I'm not an even infrequent GC shopper.....as far as they're concerned I could have died a long time ago, so I was surprised to get this. It mainly had signature and high-end guitars.....nothing I'm interested in, but I guess I'm glad they had enough money in reserve to print up and mail a worthless catalog. ;)
     
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  5. DADGAD

    DADGAD Friend of Leo's

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    Some Los Angeles county GC stores have plenty of stock. Others have bare shelves. I think they are shuffling stock to the most favored stores. The shrinking store are just shipping and receiving ports for online orders.
     
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  6. beanluc

    beanluc Tele-Holic

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    There used to be this furniture store where I grew up who would have an annual going-out-of-business sale, complete with radio ads.
     
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  7. metalosophy

    metalosophy Tele-Meister

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    Connoleys or Russels?
     
  8. bgmacaw

    bgmacaw Poster Extraordinaire

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    Yep. As long as they're carrying that private equity debt they'll have trouble and maybe even go out of business like Radio Shack and Circuit City.

    If, in addition to dumping the debt, they can spin off Musician's Friend, getting rid of the duplication of effort on the ecommerce side, close underperforming stores and redo performing existing stores to be more experience based they might stand a chance. It might also work to setup some kind of franchise or partnership arrangement to bring back the charm of a locally owned and operated store that also has the backing of national corporation buying power.
     
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  9. Fuelish

    Fuelish Tele-Holic

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  10. LOSTVENTURE

    LOSTVENTURE Tele-Afflicted

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    Same thing happened in downtown Richmond, Va. years back. A furniture store took over 20 years to go "out of business".
     
  11. burntfrijoles

    burntfrijoles Poster Extraordinaire

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    Those guys are .... clowns. (That's the least offensive thing I can say about them)
    They've been rehashing this crap for past two years.
    GC just finished debt restructuring; got an infusion of capital; and emergency from reorganization with a play approved by the judge, creditors, investors, et al.
    Inventory is low for many products: clothes, bicycles, guitars, cars, etc. My good friend was at the Auto Nation Ford Dealer and spoke with the sales manager. They had few new cars on the lot and wanted to buy my friend's 2016 Ford Edge. There was article today that Apple top chip supplier expected chip shortage to last into 2022.
    I just bought a 2021 Les Paul Standard at GC. I hadn't been on the floor more than a few days.
    Our local Sam Ash doesn't have it's usual great supply of guitars either although they had more than GC.
     
  12. Supa Necta

    Supa Necta TDPRI Member

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    Talked to my local GC manager and they’re expecting 2 trucks next week. Not sure what’s in them...
     
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  13. beanluc

    beanluc Tele-Holic

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    Yep. The whole Ever Given didn't help. Even though it was bound for Europe it disrupted shipping all over the world. And supply was already hurting before that for covid related reasons: Consumers demanding "stuff" to fill their cocoons with, and factories shutting down and re-opening at 1/4 staff.
     
  14. gridlock

    gridlock Poster Extraordinaire

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    Got mine early this week.
     
  15. nojazzhere

    nojazzhere Doctor of Teleocity

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    Maybe the trucks are coming to load up whatever the store has left, and donate to Goodwill? ;)
     
  16. 1 21 gigawatts

    1 21 gigawatts Tele-Holic

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    Part of the restructure deal was closing down certain locations. Perhaps those stores with no inventory are the ones that will be closed.
     
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  17. DADGAD

    DADGAD Friend of Leo's

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    Interesting! Do have a link to an article? I did a Google search and couldn't find that info.
     
  18. SRHmusic

    SRHmusic Tele-Holic Silver Supporter

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    Any thoughts on the debt load to cash flow ratio? They may be clowns, but they had some numbers and were pointing out there's more online competition now.

    Here's some detail I could find. The leverage ratio is still 4:1.
    https://reorg.com/post-reorganizati...but-expected-to-grow-through-forecast-period/

    Here are some of the older opinions they referenced. https://www.ericgarland.co/tag/guitar-center/
     
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  19. burntfrijoles

    burntfrijoles Poster Extraordinaire

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    As I said, they've been publishing similar content for a good while forecasting immediate demise.
    In previous videos they've referenced their contacts with former or current employees. That's called hearsay. I can't recall the rampant rumors that spread by employees in various organizations in which I was employed.
    They should stick to running their own business and do videos that highlight their offerings. They're like vultures. They're not experienced journalists.
    I guess it's pre-emptive schadenfreude on their part.
     
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  20. String Tree

    String Tree Doctor of Teleocity Ad Free Member

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