Guitar Center
Guitar Center Files for Chapter 11 Bankruptcy In Wake of Debt Restructure
Guitar Center, the nation’s largest retailer of musical instruments, has filed for Chapter 11 bankruptcy protection, the company announced Saturday. The bankruptcy filing came just one week after the Guitar Center, which had been struggling to compete with online retailers even before the pandemic, announced it had reached a debt-reduction deal with its key stakeholders. The approved restructuring support agreement (RSA) intends to reduce Guitar Center’s reported $1.3 billion debt by nearly $800 million, including $375 million in Debtor-In-Possession financing from some existing note holders and lenders. It also intends to raise $335 million in new senior secured notes. {“nid”:”9485240″,”type”:”post”,”title”:”Guitar Center R...
Guitar Center Expected to File For Bankruptcy
While this year saw brands like Fender report record sales numbers, things aren’t going so well for the retailers. On Friday, Guitar Center announced it was planning to file for Chapter 11 bankruptcy, and a prepackaged plan could be approved as early as this weekend. The move is part of the music instrument retailer’s plan to restructure its debt and will include up to $165 million in new equity investments from funds managed by its private equity owner Ares Management, along with the Carlyle Group and Brigade Capital Management, Bloomberg reports. By filing for Chapter 11 bankruptcy, Guitar Center would be able to continue operating its 300 stores during the restructuring process and be given a break on repaying debts. It also offers certain holders an opportunity to take equi...
