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Discussion in 'Bad Dog Cafe' started by Yonatan, Nov 22, 2020 at 6:01 AM.
It's official now, Guitar Center filed for bankruptcy
Here is an article on it. I am a bit surprised it took this long:
Chapter 11 to restructure their debt (again).
Nothing to see here
The assets are probably held by companies like fender. They probably had inventory agreements
Last time I was at GC, there were a disturbing number of empty hooks on the walls... but that was supposedly because of the 'pandemic guitar boom.'
Hmm, maybe not.
The local GC in our town has been on the slide for 2-3 years.
They restructured the layout of the store's interior to facilitate teaching booths.
They whittled down their inventory of guitar's over $500, to about 10%.
The acoustic room is still there but nothing like it was at the opening of the store 12 years ago. l
Less quality acoustic guitar's and a lot of used stuff; and they keep the good stuff under lock.
There's a presence of audio and percussion but again downscaled from what it was in the past.
Ther stores manager (nice chap) is gone and it almost appears the rest are mostly managing themselves.
It appears to me that GC is being severely mis-managed from the top.
And, of course current social conditions is not helping.
(BTW, im seeing a slight re-emergence of small local music shops, which I like.)
I've been a member of TDPRI since 2009 all I know Guitar center has been going of business, bankrupt, restructured and malling 20% off coupons since I've been a member. LOL
More than likely a big bulk of it are their lease agreements. Lease holders, who are almost always big real estate corporations, need a steady flow of income, even at a reduced level, to pay dividends to their REIT investors.
I wish they would die already. Open up some room for little guys.
Never happen. Ever.
This is a chapter 11 filing. So really no big deal. They’ll restructure their debt and payment agreements, re-negotiate leases and rents, maybe get a new CEO and board of directors. In no time at all it’ll be business as usual.
Little guys, like Amazon?
Last little guy I knew was partially forced out since one of the big 2 made him purchase x amount of inventory he could not cover.
I miss MARS Music. Writing is on the wall for GC.
"In 2000, Mars expected to gross $300 million in sales and was planning for a future initial public offering. In April of that year, Mars launched their e-commerce website, marsmusic.com. But as expansion costs exceeded shrinking venture capital markets following the dot-com bubble and subsequent stock market downturn of 2002, Mars Music was forced to attempt reorganization under Chapter 11 bankruptcy, and eventually filed Chapter 7 bankruptcy in November 2002."
I did get my 2002 LP Classic at a nice going out of business sale at MARS.
Just wanted to point out that in the bicycle industry, their version of guitar center (Performance Bicycle, over 200 locations nationwide) closed up shop. There is still no room for the little guys- just like musical instruments, demand for bicycles (before covid) was historically low and the internet picked up the slack.
Guitar center closing will not make it 1972 again.
Sadly if it closes GC shredders won’t have anywhere to perform.
Always look on the sunny side!
Although one factor was initially said to be an inordinate number of returned pedals, this turned out to be merely hearsay.
I did my best to shore up demand for guitars in 2020. I demanded four guitars, which is a one-year record for me.
They'll bounce back after they shuck some debt, just like Gibson. Might close a few unprofitable stores in the process though.