After years of speculation, a GC bankruptcy could happen

Dave W · October 24, 2020, 09:00:18 AM

Guitar Center is preparing for a possible bankruptcy filing

Pilgrim · October 24, 2020, 12:03:12 PM

I hope that doesn't happen. I heard that guitar sales were up sharply as people stayed at home. Hoped that would help GC.

Dave W · October 24, 2020, 10:10:41 PM

Quote from: Pilgrim on October 24, 2020, 12:03:12 PM
I hope that doesn't happen. I heard that guitar sales were up sharply as people stayed at home. Hoped that would help GC.

I'm sure it has helped, but the refinanced long term debt is finally closing in on GC.

If it happens, looks like they will be going Chapter 11, so they won't be going out of business, at least in the short term.

Grog · October 25, 2020, 08:54:05 AM

GC & MF sent out or advertised 15% to 20% offers for years. I haven't seen this for quite a while. While they do have sales, they quit the discount offers.

Dave W · October 25, 2020, 04:48:29 PM

Quote from: Grog on October 25, 2020, 08:54:05 AM
GC & MF sent out or advertised 15% to 20% offers for years. I haven't seen this for quite a while. While they do have sales, they quit the discount offers.

The major manufacturers put an end to that. From what I've read, you can still often get discounts from MF by asking but they can't advertise it like they used to.

westen44 · October 26, 2020, 03:50:59 AM

Quote from: Dave W on October 25, 2020, 04:48:29 PM
The major manufacturers put an end to that. From what I've read, you can still often get discounts from MF by asking but they can't advertise it like they used to.

I sometimes took advantage of those advertised discounts at MF. Sometimes those were hard to resist. But I was never able to get any additional discounts by asking them on the phone. I can remember once, for instance, of trying to get a slight discount and the guy told me if he could get that he would buy the bass for his wife. I've already talked about it on other threads, but where I've been the luckiest is with Sweetwater. I still don't know how I got an SG Standard like new for $300 off in June. It even looked newer than the LP Junior Tribute DC bass I bought at the beginning of the year. Because the LP Jr. did have a few very slight scratches on the pickguard. I still wish MF the best, though. Mf has been having problems for a long time, but if the opportunity ever presented itself I would still buy from them again some day. All in all in my own personal experiences with them the good has outweighed the bad.

ajkula66 · November 13, 2020, 08:24:32 PM

I just got an email notification from GC stating that they will be filing Chapter 11

Good luck to employees.

westen44 · November 13, 2020, 09:19:12 PM

It says they will still continue operations and be able to place orders, though. Will still be getting new gear, etc.

ajkula66 · November 13, 2020, 09:23:47 PM

Quote from: westen44 on November 13, 2020, 09:19:12 PM
It says they will still continue operations and be able to place orders, though. Will still be getting new gear, etc.

Well, that's the point of filing a Chapter 11 - staying in business (almost) as usual - as opposed to liquidating it via Chapter 7.

Restructuring will likely shut down stores and cost people jobs, though.

westen44 · November 13, 2020, 09:39:24 PM

Quote from: ajkula66 on November 13, 2020, 09:23:47 PM
Well, that's the point of filing a Chapter 11 - staying in business (almost) as usual - as opposed to liquidating it via Chapter 7.

Restructuring will likely shut down stores and cost people jobs, though.

The point for me personally is I'm just going to keep doing what I was already doing--getting ready to order some stuff from them. Right now nothing really important, though. I don't need much of anything at the moment. I'm sure all that's happening will cause some changes, but we'll have to see.

westen44 · November 13, 2020, 09:56:13 PM

Is Woodwind & Brasswind part of all this that's going on, too?

Dave W · November 13, 2020, 10:27:38 PM

Quote from: westen44 on November 13, 2020, 09:56:13 PM
Is Woodwind & Brasswind part of all this that's going on, too?

Yes, but who knows what will happen as part of the Chapter 11 plan. I can't imagine it closing down.

Dave W · November 13, 2020, 10:28:56 PM

Guitar Center to Prep Bankruptcy With Creditor Support

Dave W · November 14, 2020, 07:16:14 AM

Corporate spin.

Pilgrim · November 14, 2020, 09:58:21 AM

I appreciate GC because it has the best stock of stuff in my area, and it's also one of the places you can find used gear. We have a good local store (Spotlight Music), but their business has shifted 75% online, and they don't stock much in the building any more. Unless I am shopping for new stuff, they're not a great deal of help to me and there's not much point in walking in the door. I'm mainly a used buyer, so that's not much appeal for me.

I'm glad GC went Chap 11 and will be able to continue in business. I haven't followed them financially but I hope they make it.