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They can’t put that on anymore.
Guitar Center, the country’s largest retailer of musical instruments, is declaring bankruptcy, according to a report.
With an economy out of balance due to the coronavirus pandemic, the music mega-channel has said it seeks Chapter 11 protection as it tries to keep its 269 locations afloat while battling a continuing decline in sales , CNN reported on Sunday.
“This is an important and positive step in our process of significantly reducing our debt and strengthening our ability to reinvest in our business to support long-term growth,” said Company CEO Ron Japinga, in a statement. “We will continue to serve our customers and fulfill our mission to bring more music to the world.”
The 61-year-old retailer was forced to close many of its stores in March amid the spread of the deadly virus by offering online guitar lessons and instrument deals, CNN said.
But the main owner of the company, Ares Management Corporation, was unable to prevent the drop in sales that had started to plummet even before the COVID-19 lockdown due to the decrease in foot traffic in the centers. commercial.
Guitar Center is counting on an injection of $ 165 million in new investment and $ 800 million in debt reduction from lenders to try to stay in business.
The company said it hopes to complete its bankruptcy filing by the end of the year, CNN said.
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