Guitar center filing for bankruptcy? Someone posted that in Craigslist. Is that bs?

[crow01]

I wonder whoever posted that in craigslist is just pissed off or is that for real.

Warning! the guy is cursing there a lot:
(I deleted the link, cause I was reading profanity is not allowed. Pretty much this guy said that Guitar Center was filing for bankruptcy in January and that they could go to @#$)

I have an outstanding order there so I better call them.

[Electra Player]

Looks like one guy trying to make a hit on CL.
I am skeptical, at best.

[bassrique]

Couldn't find any GC BK info, but this isn't usually a good thing:

http://www.financialweek.com/apps/pb...189968/1028/MA

[AlphaMale]

No, they bought out a company that went bankrupt.

this headline could have been confusing.

http://findarticles.com/p/articles/m..._/ai_n27133169

[SMASH]

I am not sure about GC, since they're no longer a public company so we can't see their books, but I can assure you that many retailers - some of them big ones - will be going bankrupt in January and throughout 2009. In some cases, entire shopping malls will be closed.

If you get gift cards for Christmas, use them ASAP. If you give gift cards, better think twice.

As for GC, they were taken private at the very height of the stock market bubble and the very height of their stock price. At the time I used it as an example of proof that the housing/equities bubble was going to burst, which is exactly what happened - big takeovers always happen at the top of cycles, and later is it not unusual for those same companies to go under.

Factor too that GC has expanded a great deal over recent years and that what they sell is purely discretionary - meaning stuff that nobody "needs" whatsoever, most of which is bought on credit which most people no longer have. So, they fit the bill totally.

Bankruptcies have been happening to a variety of companies in sectors as diverse as housing, retail, property management, investment banking, auto manufacturing, etc. I shouldn't say "happening to" since they're just reaping the results of poor managment and agressive expansion funded by debt. It's the natural end result.

That said, few people are truly hip to GC's financial condition - good or bad - and I doubt they'd be posting cursing rants on Craigslist.

[Eilif]

The second article says that GC Acquired Woodwind Brasswind. Thats kind of sad. I don't have a ton of expereince with them, but they were very nice to me when I visited thier showroom a couple years ago. One more acquisition for the GC behemoth...

[Benjamin Strange]

Not if I have anything to say about it!

I just accepted a job at GC, working in the Pro Audio department. I haven't worked for GC for five years, so I don't know what's happening at the upper level financially anymore, although I have heard that they had to lay off about 40-50 people at the corporate management level. Of course, that could just be that they're consolidating some redundant jobs, as they do have several similar companies under the GC heading.

In this economy, I wouldn't be surprised if they go bankrupt. Nobody really NEEDS anything at GC, and I would think that sales would be WAY down right now. GC has a very high overhead, and giant profits which used to be a hallmark of the MI industry have pretty much disappeared. It's crazy to think that making a 25%-50% profit margin used to be the norm within this industry just 10 years ago...

[bassrique]

That Woodwind Brasswind thing is OLD, but is part of the reason for GCer's current woes. The story I posted was a bit on the arcane side, and said that GC is essentially "doubling down" on debt because they can't come up with the cash to handle their current debt payments.

Simply put, GC is currently borrowing money to make interest payments on previously borrowed money. This is like getting a new credit card to make payments on credit cards you can't make payments on. Draw your own conclusions as to the future of such a concern.

[AlphaMale]

They probably will go bankrupt soon. They have been offering the biggest deals of the recession.

[fdeck]

Originally Posted by Eilif

The second article says that GC Acquired Woodwind Brasswind. Thats kind of sad. I don't have a ton of expereince with them, but they were very nice to me when I visited thier showroom a couple years ago. One more acquisition for the GC behemoth...

When I lived in South Bend in the early 90's, WW & BW employed a lot of local musicians, and everybody who worked there was pretty happy about it.

[iamlowsound]

Originally Posted by SMASH

I am not sure about GC, since they're no longer a public company so we can't see their books, but I can assure you that many retailers - some of them big ones - will be going bankrupt in January and throughout 2009. In some cases, entire shopping malls will be closed.

If you get gift cards for Christmas, use them ASAP. If you give gift cards, better think twice.

As for GC, they were taken private at the very height of the stock market bubble and the very height of their stock price. At the time I used it as an example of proof that the housing/equities bubble was going to burst, which is exactly what happened - big takeovers always happen at the top of cycles, and later is it not unusual for those same companies to go under.

Factor too that GC has expanded a great deal over recent years and that what they sell is purely discretionary - meaning stuff that nobody "needs" whatsoever, most of which is bought on credit which most people no longer have. So, they fit the bill totally.

Bankruptcies have been happening to a variety of companies in sectors as diverse as housing, retail, property management, investment banking, auto manufacturing, etc. I shouldn't say "happening to" since they're just reaping the results of poor managment and agressive expansion funded by debt. It's the natural end result.

That said, few people are truly hip to GC's financial condition - good or bad - and I doubt they'd be posting cursing rants on Craigslist.

Glad to see you around and good to hear your input.

lowsound