WESTLAKE VILLAGE, Calif. — Guitar Center Inc. became the latest U.S. retailer to cite the effects of the novel coronavirus in filing for Chapter 11 bankruptcy on Saturday.
Read while listening tohttps://t.co/0pu6WTQV8F
— Raju Narisetti (@raju) November 22, 2020
(Slow Dancing In a Burning Room--one of the saddest guitar songs there is)@guitarcenter Files for Bankruptcy https://t.co/elZ5SzucIW? via @nytimes
With nearly 300 locations nationwide, the Westlake Village, California-based company is the largest retailer of music instruments and equipment in the United States, but the COVID-19 pandemic forced a substantial portion of their music-loving customers out of brick-and-mortar stores and online, Fox Business reported.
According to CNN Business, the 61-year-old company attempted to weather the pandemic by offering virtual music lessons, but the company was forced to shutter many of their 269 physical locations during national lockdowns in March and never quite recovered.
Guitar Center is filing for bankruptcy.
— Alexis Benveniste (@apbenven) November 22, 2020
The 61-year-old company— the biggest musical instrument retailer in the US — tried to stay afloat by offering virtual music lessons, but it was forced to close many of its stores in March during nationwide lockdowns.https://t.co/pk9vftnJYb
The company said in a statement that it has negotiated $375 million in debtor-in-possession financing from existing lenders and intends to raise $335 million in new senior secured notes.
Earlier this month the company reached a restructuring agreement with key stakeholders that includes debt reduction of nearly $800 million and new equity investments of up to $165 million to recapitalize the company, Fox Business reported.
The company stated that business operations are expected to continue uninterrupted, the network reported.
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Cox Media Group