Guitar Center Files for Chapter 11 Bankruptcy In Wake of Debt Restructure

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Hope you all had a good if quiet thanksgiving yesterday. Maybe it's been some of that time playing music guitar. Sales picked up this year. Many observers shock the guitar had been in a death spiral for years. According to the new york times writer. Alex williams reminded readers than twenty seventeen. Eric clapton himself said maybe the guitar is over. But this september the times reversed course hold the obituaries. Williams wrote six months into the pandemic. He wrote quote. People are turning to the guitars. Quarantine companion and psychological south spurring a surge in sales for some of the most storied companies. That has shocked. Even industry veterans sales of fender guitars especially the iconic stratocaster are off the charts so to gibson which had declared bankruptcy in two thousand eighteen and other instrument makers in virtual teachers are also happily for the most part struggling to keep up with demand to capitalize on that trend. Guitar center is airing twenty-five inspirational origin. Stories from musicians on. Its youtube channel. The retailers make music. Camping started early this month. They'll keep adding new performer. Profile through december twenty four th in addition guitar center is asking musicians everywhere to post their own videos to social media answering the question hashtag why we make music kicking off guitar. Center's campaign was grammy award winning musician. Hdr talking about being surrounded by musicians as a child. Here's a clue. My dad had a cover band when i was a little girl and they would rehearse every family gathering you know my mom's filipino. Filipinos love karaoke. So a lot of karaoke housing's lot. James brown and you know a bunch of old guys you know playing bass drums and jim out all the time in my house. But here's the rub a surging guitar keyboard and drum sales has bullied guitar center but not anywhere near enough last saturday. The country's largest music retailer filed for chapter eleven protection cove forced closures earlier. This year brought the struggling guitar center to the breaking point. Even though online sales picked up later in the year the business will continue selling instruments online and off and said it will continue paying employees and vendors in full guitar center operates. Three hundred stores in the. Us also owns music and arts which sells and rents instruments to school orchestras through. Its two hundred stores. Guitar center hopes to exit bankruptcy by the end of the year. It's difficulties began years ago. Actually two thousand seven. Bain capital took it private in a leveraged buyout. That deal left guitar center with more than a billion dollars of debt. The new york times reported under its bankruptcy plan about eight hundred million dollars of debt will be wiped out still retail dive reports that leveraged buyouts of led to the struggles or outright downfalls of numerous retailers think sears neiman marcus and lucky brands among others but for guitar center online rivals also hurt amazon of course but also sweetwater which specializes in music and audio equipment unlike amazon it employs sales people knowledgeable about both music and audio equipment sweetwaters sales of instruments in podcast gear have spiked during the pandemic. All of which is why. It's so important for tar center to employ a little inspiration to sell as many guitars and other instruments this holiday season as it possibly can to stars potential stars and well the rest of us

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