Another “Guitar Center Bankruptcy” Article. How about some speculation

[Mbroady]

This one popped up on my feed this morning

https://www.nytimes.com/2020/10/23/b...cy-filing.html

To my knowledge, Rickenbacker is the first to say no more orders for Guitar Center. So, who’s next?

And what happens to inventory if they close their doors? Any going out of business sales?

I’ve been hearing about GC bankruptcy since before the pandemic. Maybe this really is the end

[xaxinojo]

Bankruptcy doesn’t mean going out of business.

[BoneDigger]

From what I read, it's a debt reorganization effort and would not mean that they are closing down. Could some stores close? Sure. But there is no guarantee that they will.

[Mbroady]

Originally Posted by xaxinojo

Bankruptcy doesn’t mean going out of business.

Originally Posted by BoneDigger

From what I read, it's a debt reorganization effort and would not mean that they are closing down. Could some stores close? Sure. But there is no guarantee that they will.

Yep, debt reorganization does not mean going out of business, but if (and that’s a big of) more companies follow the lead or Rickenbacker, which is no longer accepting orders from Guitar Center or its sister brand, Musician’s Friend, then it seems like closure is inevitable.

The Irony is some locations are reporting a major increase in sales, due to the pandemic. But is it enough

[rstaight]

I have ordered items from a business whose suppliers demanded payment first before shipment. It gets to be frustrating. The business ended up being sold.

Bankruptcy is a method of restructuring depth to try to get back on track. Unfortunately for some of the big chains that means store closings as part of the process.

Some never get it together again.

[Maryc-k]

Rickenbacker has switched over to Sweetwater.

As for MF, the are listing all the used GC stock on their website.

[Mr. Jelly]

GC is a type of musical Walmart. Being Walmarted is something most businesses should avoid. The MO is to become the largest outlet for a manufactures product. And even get the manufacturer to invest in expanding. Then the outlet can demand special pricing and product etc. And if the manufacturer won't be manipulated the outlet quits doing business with them. Thus ruining the manufactures business because they became over extended because of the added business.
In the past GC has been known to pay some companies after the store sale. So it was a type of loan to GC until the merchandise was sold.
In negotiations in the event of a bankruptcy GC can prove that they don't have the money to pay their bills so they pay only $.75 on the dollar or whatever. I have no idea how the government forgivable covid loans may play in this.

[jim1960]

Originally Posted by Maryc-k

Rickenbacker has switched over to Sweetwater.

As for MF, the are listing all the used GC stock on their website.

MF and GC are the same company since about 2000.

[Dwight]

Originally Posted by Maryc-k

Rickenbacker has switched over to Sweetwater.

As for MF, the are listing all the used GC stock on their website.

Thanks for bring that to my attention, Over 27,000 used items on the Musician's Friend website.

[Br1ck]

Not in great shape prior to Covid, most stores are rumored to be 4-5 months in arrears on their rent. If you are one of the big manufacturers of gear, likely Guitar Center owes you a bundle. It's a sad situation if GC owes you money.

[Maryc-k]

Originally Posted by jim1960

MF and GC are the same company since about 2000.

yes, but if you wanted used gear you either went into GC or shopped their on-line. My comment was that now the used merchandise at GC is available through MF's webpage. Not everyone is thrilled with GC's on-line shopping format.

Dwight- People have really picking through the used stuff on MF over the last week or so. They have been doing a lot of markdowns, so if you see something don't wait. I would not be surprised if they closed down GC eventually and just stayed with the MF model. They'd save a lot of money.

People are still buying instruments, and manufacturers and builders are still backlogged. So, who are they going to ship too? The retailers who pay their bills or the ones who don't?

[89bruin]

I’ve noticed GC isn’t listing some of the newer models. For example, they don’t list any of the new Gretch P90 solidbodies but Sweetwater has had them in stock. Makes me wonder if it’s a simple supply chain issue or a payment issue.

[rokdog49]

Originally Posted by Mr. Jelly

GC is a type of musical Walmart. Being Walmarted is something most businesses should avoid. The MO is to become the largest outlet for a manufactures product. And even get the manufacturer to invest in expanding. Then the outlet can demand special pricing and product etc. And if the manufacturer won't be manipulated the outlet quits doing business with them. Thus ruining the manufactures business because they became over extended because of the added business.
In the past GC has been known to pay some companies after the store sale. So it was a type of loan to GC until the merchandise was sold.
In negotiations in the event of a bankruptcy GC can prove that they don't have the money to pay their bills so they pay only $.75 on the dollar or whatever. I have no idea how the government forgivable covid loans may play in this.

It’s not just being “Walmarted”, it’s being “Bigboxed”
Home Depot and others have done the same.

[takamineGD93]

Originally Posted by rokdog49

It’s not just being “Walmarted”, it’s being “Bigboxed”
Home Depot and others have done the same.

This is exactly why we have anti-trust laws that no one upholds.

[M Hayden]

Blogger and futurist Eric Garland has been predicting this for a couple of years. I’m not surprised - they’re very much in debt, and it’s unsustainable.
That said, they are all the resources in some communities, and the failure of the business would be a shame.