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Guitar Center Files for Chapter 11 Bankruptcy
- Thread starter bobyoung53
- Start date
I do not have any firm data but Long & McQuade (L&M) seems to be doing just fine. Over the last five years, L&M went from being a regional retailer to a national retailer. I have been browsing from time to time on their website and they are back ordered on a ton of gear. I don't know if it is a good sign or not. Maybe they sold all their inventory and, due to COVID, they are having a hard time restocking their shelves. I wish them luck.
As for Steve's, they are off my radar. Steve's is a regional retailer that has no presence where I live. So, I don't know how they are doing.
Most music retailers are back ordered on many items, so I wouldn't view that as a negative on any of them. The supply chain has been interrupted.
Sales are up, but in-store sales are down. The physical stores are a huge drain on their financial condition, which wasn't very solid at the beginning of the year anyway.
Interesting. My company filed Chapter 11 earlier in the year (not covid related) and used the same positive business jargon:
"The financial move will allow business operations to continue uninterrupted”
“$XXX Million in new equity investments”
“Recapitalize the company”
"Reduce debt"
Basically the investment firm that owned us and ran the company into the ground bailed and another owner picked up the pieces. Most, if not all, executive management was replaced. If GC has any skeletons in it's closet, they are sure to come out.
"The financial move will allow business operations to continue uninterrupted”
“$XXX Million in new equity investments”
“Recapitalize the company”
"Reduce debt"
Basically the investment firm that owned us and ran the company into the ground bailed and another owner picked up the pieces. Most, if not all, executive management was replaced. If GC has any skeletons in it's closet, they are sure to come out.
IMO, just another thing the "hivemind" got wrong. I've had good experiences when I've travelled the hour plus it takes to get to the nearest GC store.
If fender has been selling a lot to GC on credit, and that has accounted for many of these supposed instrument sales, we can expect to see fender’s stock take a hit
If they were a publicly held company - they may have been at one time but are not now, as I understand it. (But, yes, the value of the guitar maker is said to be somewhat tied to the fate of the guitar seller).
What brand you drinkin', KbD? I'll join you. We'll hoist one every time this comes up.
That's just great! Now who can I trust to mess up the intonation on my new guitar?
They don’t have anything of value in most guitar centers. I can’t remember the last time I went to one & was excited to see something. The one in Nashville has some cool equipment & the one in LA. 90% of others are filled with junk. The one near me is pathetic.
not when you consider that GC was first drained of cash when acquired by bain, then are probably being drained by the new guys - was it ares? when all their profits keep getting sucked away, it doesn't matter how much GC makes. it's a victim of vulture capitalism.
consider this: companies including toys r us and payless were put under by such tactics in relalively short order. that GC has lasted this long is a testament that they're actually doing well.
Bain did the same thing to Dunkin Donuts! Now, Dunkin has to sell a million donuts a day to pay off their debt! Not happening.
I wish GC the best but they’re in the race to the bottom. We know they won’t be expanding their inventory to include some of the new quality bass makers unless management has a epiphany.
Means I need to buy whatever I need now online while I still have a local GC to walk back the returns :/
When you smash perfectly salvageable equipment all the time and throw in your dumpster karma is going to catch
Up with you. There is a lot of energy in musical instruments. Musicians put their heart and souls into playing. Have you seen the YouTube videos of GC dumpster dives. They are horrible to the equipment. A bunch A-holes the lot of them. I purchased a used Squier jbass from the local GC here in Sacramento a few years ago and it had a tuner that would rattle. I brought it back under the warranty and they had it for a week and claimed they couldn’t get the part to fix it ***?? So they offered me a refund. I was shocked but ended up buying another bass they had on sale on the new rack. I walked back in the next day and asked for the manager and told him I would be willing to buy that rattling bass as is and fix myself for a discount because I enjoyed the tone of it and he told me it was gone. Another employee overheard me and and said yeah we smashed that red bass last night. I promptly returned the new bass I bought the day before and From That day forward I have never stepped foot in there again. Instead of selling me 2 basses they sold me none. I goto a local small shop here Skips music instead.
GC gets what they deserve. Bye bye GC
Sad, and they put a lot of good stores out of business too when they first came on the scene kind of like Walmart. We had a few stores in MA that had been here forever and were the best around called E.U. Wurlitzers. The Boston store had been a landmark since 1890 and was THE place to buy, there were plenty of other stores that took good care of instruments around too and they're all gone put out of business by the Walmart of music: GC.
It's amazing that Bain Capital and Ares Management can still find investors to swindle.
I actually received an email from them explaining the whole situation. I felt blessed. Having said that I would hate to see them go. Perfect for that last minute cable or whatever. I actually bought my last bass there.
Tired of getting stuff shipped but I understand its the way of the new world. I personally hope they make it.
Tired of getting stuff shipped but I understand its the way of the new world. I personally hope they make it.
