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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. Peegoo

    Peegoo Poster Extraordinaire

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    Jordan Kitt's Music (DC-area chain that sells Steinway and Yamaha pianos) has been going out of business for at least 30 years. It's hilarious.

    Hmmm...looks like they lost their Steinway dealership. They have Yamaha, Bösendorfer, Cristofori and Roland.

    https://jordankitts.com


     
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  2. Slim Chance

    Slim Chance Tele-Afflicted

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    The Jordan Kitts in Rockville, MD (if it’s still there) is directly across from a Platinum Guitar Center. The GC used to be a Veneman Music. Things change.
     
  3. Peegoo

    Peegoo Poster Extraordinaire

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    Ari Veneman was a heck of a guy...like Chuck Levin (RIP Ari and Chuck). They truly cared about local music and supporting the players and bands. Chuck Levin's (Wheaton) is still a pretty good shop.

    I remember when Veneman's was up in Gaithersburg...small shop, FILLED with gear and musicians--pros and amateurs alike.
     
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  4. DekeDog

    DekeDog Tele-Afflicted

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    This is how MBAs scramble to rescue a sinking ship and minimize losses. GC is dead, they just don't know it yet.
     
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  5. Slim Chance

    Slim Chance Tele-Afflicted

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    Bought my LP at Chuck’s a month ago. And my first electric, as well. The store hasn’t changed much. I found a couple of the older guitar sales guys to be a bit snobbish, but the fellow (Luke) I got the LP from was great. I just wish that they had more room or at least rooms where you can test gear without sitting aside someone else also wailing away.

    FWIW, the store was pretty well stocked. I had my choice of two; same model, same color.
     
  6. burntfrijoles

    burntfrijoles Poster Extraordinaire

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    Their deaths (they've had several) resulted from getting in bed with a private equity, venture capital group like Bain. LBO's seem to always end this way. Someone gets rich and others get the shaft.
     
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  7. bgmacaw

    bgmacaw Poster Extraordinaire

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    At that time, everyone thought the "Apple Store" retail model was a brilliant innovation and thought they could easily emulate it. They didn't realize that it was mostly a marketing ploy for a brand that already held a near-cult following.
     
  8. burntfrijoles

    burntfrijoles Poster Extraordinaire

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    Apple's move was brilliant. They demystified the Mac line and helped bring them into more of the public's view. They had the iPod to show off, etc. You rarely had to do on-line ordering in an Apple Store. No one could follow that model and Best Buy wasn't trying to follow Apple's model. Best Buy was trying to ease their inventory woes and improve their supply chain management, overhead.
     
    Last edited: Apr 16, 2021
  9. getbent

    getbent Telefied Silver Supporter

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    The apple stores obliterated all records for sales per square foot and continue to se the standard in that area. The move to the Apple store had multiple purposes (I know this, I was there) the biggest one was that the company was experiencing huge windfalls in profits after rebuilding the brand. One of the commitments was to NEVER having financial worries again and the easiest way to do that was to invest in real property (page from McDonalds playbook) so, Apple hired THE BEST person to search for the best pieces of property worldwide for retail and lock them down. The coups in NYC was the pinnacle of that effort. The idea being that, if need be, financially, those sites would guarantee value to the company. They also brought in the person who took Target from being a boring midwestern brand to being TARGET in Ron Johnson.

    Put that with the wisdom of some of the ideas of Mervyn Morris (narrow and deep stores) and Nordstrom style service, it was a great plan perfectly executed.

    People did try to emulate the experience, but were missing pieces OR their business was not built for that type of experience. Among the great things that came from it was an expectation of that different kind of retail experience that was good for older people, but even better for new generations.

    One thing we could verify with numbers was that if the competition chooses to mention you in their ads, you have won. The other key was creating tools that people wanted and found easy to use and helpful. sizzle and steak, not just sizzle. So, it was absolutely not 'simply a marketing ploy' it was an entire, deep and thoughtful strategy and it worked.
     
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  10. bgmacaw

    bgmacaw Poster Extraordinaire

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  11. Toto'sDad

    Toto'sDad Telefied Ad Free Member

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    So, they owe you money too?:D:D
     
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  12. getbent

    getbent Telefied Silver Supporter

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  13. SRHmusic

    SRHmusic Tele-Afflicted Silver Supporter

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    Which is exactly how this started in 2007 with Bain's LBO of GC for $2B.

    Ares acquired GC from Bain in a debt for equity swap in 2014, still with $1.3B in debt.

    The bankruptcy restructuring reduced the debt in 2020, but still quite a lot on the books, about $0.75B. They need to have strong sales still to keep up with debt obligations. Time will tell if GC can pull it off. Their competitors like Sweetwater don't have the debt, but also don't have the physical presence.

    As @getbent noted, retail real estate can be quite valuable. From the 2013 10-K GC does own some land and buildings, anywhere from $32M to $250M (if counting 'leasehold improvements') at that time. That's probably grown in value since they were taken private. That and generally their physical presence must be a big part of the equation that led investors to put in more money in 2020.

    From 2007:
    https://www.reuters.com/article/us-...-bought-by-bain-capital-idUSBNG22972720070627
    From 2014: (partly paywalled)
    https://www.wsj.com/articles/SB10001424052702304441304579479170159872750
    From 2020:
    https://www.nytimes.com/2020/11/22/business/dealbook/guitar-center-files-for-bankruptcy.html
    2013 10-K:
    http://pdf.secdatabase.com/459/0001104659-13-024368.pdf
     
  14. ping-ping-clicka

    ping-ping-clicka Poster Extraordinaire Ad Free Member

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    :mad: non, bien plus que de l'argent sale. assaut spirituelo_O
    ce sont des écumes d'une nature différente,
    Ils sont des vampires psychiques suceurs d'âme:twisted:
    DZO-P-gioconda.jpg
     
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  15. decibel

    decibel Tele-Meister

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    I've received so many more sale coupons from all the music stores. I guess the mad buying rush is over.
     
  16. Toto'sDad

    Toto'sDad Telefied Ad Free Member

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    So you've been out walking around on the streets of San Francisco again? Just pull your shoes off, use the garden hose to wash the poo poo of your shoes, set them out on the porch to dry, go on in the house, and put Oprah on, You'll feel better in no time at all. :)
     
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  17. kingofdogs1950

    kingofdogs1950 Tele-Afflicted

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    I lived a couple of miles from the local GC in College Station for 13 years and never went into the store.
    I've since moved about 40 miles away and went to the CS store to return a guitar I bought online that had problems.
    The return went smoothly and the employee I dealt with was pleasant.
    The store was down to the nubbers on inventory. Whole areas of the store basically empty.

    When I first shopped at a GC it was in Houston in1998. I came to know the main acoustic salesman, Doug. Bought a couple of guitars from him.
    Later, he moved to Austin and shortly after I did too.
    I hope Doug and other GC employees are going to be OK.
    I've had many good dealings at GC and can only wish them well.

    King
     
  18. ping-ping-clicka

    ping-ping-clicka Poster Extraordinaire Ad Free Member

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    good advice for those not raised in a culture of violence and vengeance. I put a curse on them and all that travel with them , I seems to be working out o.k. so far I will be avenged, (just speaking in a humorous parody of what a bad Hollywood movie would script)
    I honestly wouldn't waste my time or accrue the karma of putting a curse on those bottom feeders.
     
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  19. Toto'sDad

    Toto'sDad Telefied Ad Free Member

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    Never stand in front of a mirror when hurling curses! :D
     
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  20. ping-ping-clicka

    ping-ping-clicka Poster Extraordinaire Ad Free Member

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    more good advice, thank you. you are generous to a fault. Still ruining beautiful walks shooting those illusory golfs.
    well your handicapp is better than mine that's for sure.
     
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