#1
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Federal Judge Approves Guitar Center's Pre-Packaged Chapter 11 plan
A federal Bankruptcy Judge in Richmond has approved Guitar Center's plan to exit from bankruptcy, perhaps as soon as next week. The restructuring will reduce its $1.43 billion in debt by about $800 million.
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#2
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- and they've done this how many times before...?
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"Mistaking silence for weakness and contempt for fear is the final, fatal error of a fool" - Sicilian proverb (paraphrased) |
#3
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I wonder which creditors got the short end and how many stores will close?
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#4
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$800,000,000 is a ton of cash folks! I wonder how many employees work for the GC suppliers and service providers who won't be getting their owed portion of this $800,000,000 ? This translates to job losses beyond GC. Yet to be seen is how this will affect consumers moving forward.
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#5
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I used to be a big customer spending thousands in their stores, but my last 3 guitars were bought elsewhere.
What else is there to say? I think the only reason they can stay open is because the mouses keep clicking and the doors keep revolving, but fiscal management historically has not been their thing- like a teenager with a credit card...only bigger. There will come a day when too many manufacturers refuse to do business with them? I hope not, Fender is reporting record sales this year. Wouldn't that symbiotic relationship be good for GC too? Is that too optimistic? |
#6
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I will not patronize them any more. Period. Bankruptcy hurts real people, who extended credit in good faith, that they would be paid. Doing this repeatedly is using a safety net law as a business tool, and IMO is unethical, and akin to theft. I know that I may be naive, but thats ok. I can sleep.
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Dave F ************* Martins Guilds Gibsons A few others 2020 macbook pro i5 8GB Scarlett 18i20 Reaper 7 |
#7
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Quote:
Sometimes the bankruptcy includes closing some stores as that may be the only way out of the lease, but that doesn't seem to be the goal here. GC stores are operationally profitable. The issue has always been the debt from the Bain buyout. Ares got its position in the company when Bain couldn't pay. Hopefully this is the way this plays out. |
#8
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I get what bankruptcy is about. I don't like the fact that it has become normalized and accepted as standard operating procedure. If you or I can't pay our bills we're ostracized losers. If they are belatedly paying less for their operating costs or merchandise their old customers deserve a partial refund. How about the people that have ran it into the ground return some of their bonus money from the last several years. Don't get me started.
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Waterloo WL-S, K & K mini Waterloo WL-S Deluxe, K & K mini Iris OG, 12 fret, slot head, K & K mini Follow The Yellow Brick Road |
#9
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Quote:
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