Despite the bankruptcy filing, Guitar Center is promising business as usual in its 269 stores. According to the filing \u201call financial obligations to vendors, suppliers, and employees will continue to be paid in full in the normal course.\u201d<\/p>\n

While some may be spooked by the filing and restrict deliveries, the move will not come as a surprise to most Guitar Center suppliers who have long expected it.<\/p>\n

Also, most of the $800 million in debt that Guitar Center is hoping to shed is to investors and lenders, and not to Fender, Gibson, and its hundreds of other suppliers.<\/p>\n

Private equity firm Ares Management acquired a stake in Guitar Center in 2014 and the retailer has received support for this restructuring from new investors Brigade Capital Management and a fund managed by The Carlyle Group.<\/p>\n","protected":false},"excerpt":{"rendered":"

(Hypebot) —\u00a0Guitar Center has confirmed that it has filed for bankruptcy. But what does that mean for musicians? The Guitar Center Chapter 11 bankruptcy hopes to strike a deal with key investors and lenders to reduce debt by $800 million and \u201cbest position the company to return to its growth trajectory prior to COVID-19.\u201d \u201cToday<\/p>\n","protected":false},"author":29,"featured_media":99741,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_stc_notifier_status":"sent","_stc_notifier_sent_time":"2020-11-19 12:45:31","_stc_notifier_request":false,"_stc_notifier_prevent":false,"_stc_subscriber_keywords":"","_stc_subscriber_search_areas":"","footnotes":""},"categories":[51,75,22],"tags":[12778,12779,528],"class_list":["post-99740","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-breaking-news","category-business-news","category-industry_news","tag-guitarcenter","tag-retailapocalypse","tag-bankruptcy"],"acf":[],"yoast_head":"\n