Guitar Center May Declare Bankruptcy After Missing $45 Million Payment
Guitar Center, one of America’s largest music retailers, is in a battle to stay alive. It’s reported that the company missed an enormous interest payment and is on the clock to resolve the matter. According to sources, Guitar Center skipped out on a $45 million payment this month. This is worrisome considering how much money the company must come up with to avoid being shut down for good.
As a result, the company is preparing to file for bankruptcy in order to protect its assets. The pandemic has taken a toll on all businesses this past year, and Guitar Center is fighting to push forward. Unfortunately, the company has been in rough situations before but has been doing better after being acquired by Ares Management in 2014. Still, the pandemic has changed how people shop, with many staying home and buying online.
Right now, Guitar Center can obviously resolve the missed interest payment by paying it off. That said, $45 million is a massive amount of money to come up within a short period of time. We’re unsure if they will turn to close down select stores but it’s certainly a possibility. In order to move forward, they must of a clear plan, showing how they can move forward and adapt to the current pandemic challenges.
It would be very unfortunate if Guitar Center had to close down for good. If you haven’t been to one before, it’s a one-of-a-kind store that offered a wide array of musical instruments to both purchase and rent. Currently, they have 269 stores across the United States, with its headquarters in Westlake Village, CA. We’ll keep you posted with any updates.
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