The Guitar Center has 269 locations, many of which are in malls that had struggled long before Covid-19. Foot traffic in malls has declined, and stores like the Guitar Center, which relies on people making discretionary purchases, have been among the hardest hit this year.
The company said in its bankruptcy filing that it received up to $ 1
The company’s primary owner, Ares Management Corporation, as well as the new equity investor Brigade Capital Management and a fund managed by The Carlyle Group will help fund the Guitar Center through bankruptcy.
“This is an important and positive step in our process to significantly reduce our debt and improve our ability to reinvest in our business to support long-term growth,” Guitar Center CEO Ron Japinga said in a statement.
“We will continue to serve our customers and deliver our mission to put more music into the world,” Japinga said. He added that the company expects to complete the process before the end of the year.