Guitar Center has filed for bankruptcy protection as the world’s most renowned music instruments vendor goes through tough times through the pandemic. Though this doesn’t mean that the company is shutting down, this voluntary filing was a step towards reducing their massive pile of debt. The company announced the move on Saturday.
Guitar Center has been struggling with competing with digital vendors even before the pandemic, but it’s proving to be critical now more thane ver. The move comes just after the company said that they reached a new debt-reduction deal. The deal aims for the company to keep operating as usual, while reducing its debt – currently sitting at $1.3 billion – by $800 million.
The store also stated that they are going to honor every piece of their business. As Guitar Center files for bankruptcy, they stay true to the task. They are committed to paying every supplier, vendor, and employee involved. They will also keep running their websites, call centers and social media. Orders will be shipped and received normally. All merchandise credit, prepaid lesson, gift card, warranty, deposit, or rental will be honored.
Over the years, Guitar Center has stood as a longstanding resource for musicians and audiophiles, perhaps as one of the most well-known names in the game. This filing for bankruptcy has shown that times change, and it’s not always easy to keep up. Let’s home this will allow them to recover so they can get back on their feet.