Bye Bye Guitar Center? | MUSIK !D TV NEWS
While online shopping and music are evolving, guitar brands and merchants are facing bankruptcy. Lately, Guitar Center and Gibson Guitar are going through a financial crisis. Standard & Poor (S&P) has declined Guitar Center to a "CCC," implying a critical risk of bankruptcy.
“All of today’s rating actions are in response to the closing of an exchange offer that was announced by Guitar Center this past March. “ – Keith Foley, Senior Vice President of Moody’s “This year is critical and they are running out of time. And if this ends in bankruptcy, [Gibson CEO/owner Henry Juskiewicz] will give up the entire company.” – Kevin Cassidy, Senior Credit Officer of Moody’s Investors Service
Overall, Guitar Center is in debt for $1 billion due to ongoing loans. Also, it has been reported that yearly guitar sales have went from 1.5 million to 1 million before 2017. Both Guitar Center and Gibson Guitar had a difficult time to merge away from the sharp fall in guitar sales.
What do you guys think? Will Guitar Center find a way to recover from their financial issues? Let us know in the comment section down below.