Guitar Center Files for Bankruptcy

[ducktrapper]

https://www.foxbusiness.com/markets/us-retailer-guitar-center-files-for-bankruptcy

[eded]

Gotta say, no sympathy here.

They pushed a bunch of local small shops under when they were new.  They were "meh" for a couple years, then they were crap.  The last time I went in, I saw why I hadn't gone for about 5 years.  I won't mourn their shutdown.

Ed

[JOYCEfromNS]

I won't mourn their shutdown.

[B0WIE]

Tough a lot of people celebrate this stuff, it's bad for music in general. When a kid can't go into a show and physically put their hands on an instrument, it hurts the chances they're going to begin playing one, hurts the likelihood a parent is going to get them one as a gift. Maybe it's different in CA but in the states GC is the primary brick and mortar and many cities have no other stores.
I wish GC did things differently, so I'm not going to defend them as a company. I can't say they were any worse than most of the mom and pop shops I've been to.

[Silence Dogood]

I can't get excited about seeing anyone go broke or go out of business.  I got my first guitar at GC and have many fond memories of the place.  I wish them well.

[ducktrapper]

Tough a lot of people celebrate this stuff, it's bad for music in general. When a kid can't go into a show and physically put their hands on an instrument, it hurts the chances they're going to begin playing one, hurts the likelihood a parent is going to get them one as a gift. Maybe it's different in CA but in the states GC is the primary brick and mortar and many cities have no other stores.
I wish GC did things differently, so I'm not going to defend them as a company. I can't say they were any worse than most of the mom and pop shops I've been to.

A friend of mine's store here in Thunder Bay went out of business about seven years ago and, according to him, it was these kids and their parents who caused it and ruined it for everyone. They'd come into the store, try things and then order them from an online dealer. Wouldn't even buy a pick or a set of strings. Guitar Center or anyone going out of business is not something to celebrate. Often there will be no alternative within close proximity. We're fortunate here that the last man standing runs a great shop.  

[gtrplayer]

The pandemic and accompanying lockdowns are decimating the retail business, gyms, restaurants, etc.  A lot of Guitar Centers were located in malls and mall traffic has shrunk to say the least.  As much as you dislike GC it's never good to see neighborhood/any business fail.  Small business employs a lot of people, supports the tax base and keeps Main Street alive and vital  (and besides Bezos has enough of our money).

[ducktrapper]

The pandemic and accompanying lockdowns are decimating the retail business, gyms, restaurants, etc.  A lot of Guitar Centers were located in malls and mall traffic has shrunk to say the least.  As much as you dislike GC it's never good to see neighborhood/any business fail.  Small business employs a lot of people, supports the tax base and keeps Main Street alive and vital  (and besides Bezos has enough of our money).

Exactly. 

[unclrob]

The guy who started it was a used car salesman.Started as organ center selling Vox organs,Then they took on the final sales og Vox guitars. 14 years ago they were $190millian over 180 days behind payment to suppliers.The employees have no knowledge of the product in the store,well maybe not all of them.Everything happens for a reason.I have a local store that I do business with and there barely holding on but there not going anywhere.May have too let some people go.

[Riverbend]

If I'm not mistaken, this has been in the wind for quite some time and finally now becoming a reality. And it doesn't necessarily mean they'll end up shuttered. Restructuring sometimes does work, though it's most often just a delay of the inevitable. I've always patronized the mom and pops through the years and holy smokes are they getting harder to find! The ease of internet shopping has affected us all in profound ways. I've only been in a GC once and while it was kind of cool spending a little time in their nice acoustic guitar room, I was a lot disappointed in the overall experience. Too big, poor service and mediocre employee knowledge. I'm really fortunate to at least still have a small music store nearby and I patronize them every chance I get. Plus they carry Larrivees!!! The owner even bought a 50th anniversary and has it hung NFS in the shop.    

[eded]

The guy who started it was a used car salesman.Started as organ center selling Vox organs,Then they took on the final sales og Vox guitars. 14 years ago they were $190millian over 180 days behind payment to suppliers.The employees have no knowledge of the product in the store,well maybe not all of them.Everything happens for a reason.I have a local store that I do business with and there barely holding on but there not going anywhere.May have too let some people go.

The guy who started it is long gone...  he might or might not have been a good guy.  We'll never know..  It's been run by investment brokers for a couple decades.   They made it no mystery they came to towns to overtake local shops.  When they came to Baltimore, they set up shops near several long time local shops, undercut their prices, and put them out of business.  Often, they sold stuff below the prices the small shops could get it for.  They hired people who knew nothing about the product and just made stuff up when asked questions. They were the Walmart of music equipment.  Sorry folks, but I will celebrate their closing. 

Ed

[Silence Dogood]

Maybe it's different in some areas, but where I live GC (and Sam Ash) exist alongside several small shops that have remained, some for decades.  Not always, but sometimes smaller shops are run poorly and with business practices that no longer work.  One shop in my area comes to mind; rather than run it like their dad did back in the day, they found niche parts of the local market and focused heavily on them (e.g., praise/worship musicians and Mexican musicians).  It has worked well for them.  But there were other shops that continued to pretend it was still the 1970s/80s, and they are gone.  I remember one smaller shop around here where the owner was always bemoaning GC and how he couldn't make a living.  I understood his plight, but the burden was on him to get creative or close.  He closed.  Some of these same smaller shops (like his) would rip people off routinely because before the ubiquity of online buying and GC, they could.  Human nature is the same at GC as it is anywhere else.  

I see a lot of people say the staff at GC doesn't know the product etc.  If you're on a guitar forum, you likely don't need help like this anyway, so it's hard for me to understand this complaint.  When I go into any shop, I probably know as much as anyone working or shopping there because this is the stuff I'm interested in.  I get that some folks new to the game might need some help, but nine times out of ten, when little Johnny goes into the shop with mom to get started playing guitar, mom is going to buy the cheapest thing anyway.  This stuff sells itself and always has.  

If anyone is glad to see GC go away, that's fine and an opinion you're entitled to.  But remember that at the start, it was someone's dream that blossomed and grew and served a huge purpose for a long time.  It's hard for me to understand celebrating anyone's failure and, particularly as an American, the death of an American company.  YMMV.

[ducktrapper]

Regardless of how one feels about GC, it's not a good thing for hundreds of people to lose their jobs and nothing to celebrate. It's not like a way better alternative is going to pop up in every case. Just more power and money to Bezos. How is that a good thing? 

[DaveyO]

I appreciate GC
Been going there for about 40 years
I don't always like the sales guys but
I still get to play different guitars there
And some decent deals if u buy used
I hope they stick around
Dave

[Queequeg]

I would ask you all to consider just what bankruptcy is and means. The management of the corporation will for a time be in the hands of the court. And then the court will determine what becomes of the company's debt.
Accounts receivables for companies such as Fender, Gibson, CF Martin and many others will take a major hit. I don't know if Larrivee is currently doing business with Guitar Center.
Five cents on a dollar is not an uncommon outcome for those with claims against the company in bankruptcy. There are no winners in this situation, thus this is no time for cheering.

[eded]

I would ask you all to consider just what bankruptcy is and means. The management of the corporation will for a time be in the hands of the court. And then the court will determine what becomes of the company's debt.
Accounts receivables for companies such as Fender, Gibson, CF Martin and many others will take a major hit. I don't know if Larrivee is currently doing business with Guitar Center.
Five cents on a dollar is not an uncommon outcome for those with claims against the company in bankruptcy. There are no winners in this situation, thus this is no time for cheering.

Better to get that nickel on the dollar now than to have the execs drain the coffers further and only get 3 cents.

It has been a bad company, purposely building debt (and running off with the capital) for years.

Personally, I'll dance in their parking lot once they close.

Ed

[ST]

Chapter 11 Bankruptcy

This chapter of the Bankruptcy Code generally provides for reorganization, usually involving a corporation or partnership. A chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time. People in business or individuals can also seek relief in chapter 11.
Source: US Courts.gov


Guitar Center files for bankruptcy - Chapter 11

It's not over 'til it's over.

[B0WIE]

Maybe it's different in some areas, but where I live GC (and Sam Ash) exist alongside several small shops that have remained, some for decades.  Not always, but sometimes smaller shops are run poorly and with business practices that no longer work.  One shop in my area comes to mind; rather than run it like their dad did back in the day, they found niche parts of the local market and focused heavily on them (e.g., praise/worship musicians and Mexican musicians).  It has worked well for them.  But there were other shops that continued to pretend it was still the 1970s/80s, and they are gone.  I remember one smaller shop around here where the owner was always bemoaning GC and how he couldn't make a living.  I understood his plight, but the burden was on him to get creative or close.  He closed.  Some of these same smaller shops (like his) would rip people off routinely because before the ubiquity of online buying and GC, they could.  Human nature is the same at GC as it is anywhere else.  

I see a lot of people say the staff at GC doesn't know the product etc.  If you're on a guitar forum, you likely don't need help like this anyway, so it's hard for me to understand this complaint.  When I go into any shop, I probably know as much as anyone working or shopping there because this is the stuff I'm interested in.  I get that some folks new to the game might need some help, but nine times out of ten, when little Johnny goes into the shop with mom to get started playing guitar, mom is going to buy the cheapest thing anyway.  This stuff sells itself and always has.  

If anyone is glad to see GC go away, that's fine and an opinion you're entitled to.  But remember that at the start, it was someone's dream that blossomed and grew and served a huge purpose for a long time.  It's hard for me to understand celebrating anyone's failure and, particularly as an American, the death of an American company.  YMMV.

Good post. I think a lot of mom and pop shops put themselves out of business by treating people like it was a privilege to be there. GC was a breath of fresh air because you could put your hands on everything without someone giving you the stink eye. I bought so many instruments because THAT ONE really struck me and I just had to have it.

[ducktrapper]

Good post. I think a lot of mom and pop shops put themselves out of business by treating people like it was a privilege to be there. GC was a breath of fresh air because you could put your hands on everything without someone giving you the stink eye. I bought so many instruments because THAT ONE really struck me and I just had to have it.

To quote Miranda Lambert, "It takes all kinds of kinds".

https://www.youtube.com/watch?v=02X8bX_EBv4

[Silence Dogood]

Good post. I think a lot of mom and pop shops put themselves out of business by treating people like it was a privilege to be there. GC was a breath of fresh air because you could put your hands on everything without someone giving you the stink eye. I bought so many instruments because THAT ONE really struck me and I just had to have it.

Good post to you as well.  I love small business and support local shops where I live when I can.  I hardly ever buy instruments so I'm not much help to anyone there.  The other day I was in a local shop and the guy had a ton of nice acoustics on the wall, many Larrivees.  We started chewing the fat about music and found lots of common ground, so he started handing me guitars to try.  I played some stuff that I'd only ever seen in magazines and online.  It was a blast.  I didn't buy one, but I did buy a t-shirt and some stings from him for letting me have fun for a couple hours.  To me this is common sense and common courtesy.  This particular shop has been around since the 70s and hasn't been shut down by GC.