they bought themselves out from Bain several years ago, but that's what got them heavily in to more debt. They have the investors that got them out of that, plus a few new ones now, which really only means more debt - just spread across more groups. So this is just a band-aid on a leaking aorta...
Guitar Center finally in the cross-hairs?
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Re: Guitar Center finally in the cross-hairs?
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Re: Guitar Center finally in the cross-hairs?
that's not true. they are owned and controlled by Ares Management now. They were one of their largest creditors when Bain had them, and the debt became so large they did a debt-for-equity swap so Ares now owns and manages them. Bain has a small interest (non-controlling) in them still. Ares are the ones doing the bankruptcy. Guitar center never bought themselves out of anything.digitaldrummer wrote: ↑Thu Nov 19, 2020 7:00 amthey bought themselves out from Bain several years ago, but that's what got them heavily in to more debt. They have the investors that got them out of that, plus a few new ones now, which really only means more debt - just spread across more groups. So this is just a band-aid on a leaking aorta...
https://pitchbook.com/news/articles/thi ... ns-to-ares
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Re: Guitar Center finally in the cross-hairs?
ok, fair enough, but apparently Ares is not the only investor - they acquired the controlling interest it in 2014 according to this article (and then GC owed THEM a lot of money, i.e. debt). So Bain is not totally out of the picture either. But now there are additional investors as well (the restructuring, and new capital, and potentially more debt - investors expect something in return right?).markjazzbassist wrote: ↑Thu Nov 19, 2020 7:28 amthat's not true. they are owned and controlled by Ares Management now.
https://www.billboard.com/articles/busi ... bankruptcy
also
https://static.guitarcenter.com/static/ ... -13-20.pdf
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Re: Guitar Center finally in the cross-hairs?
plugging a hole on a sinking ship. no national big box has emerged from chapter 11 and been profitable. they all die soon after. GC will sadly not be any different. might take a few more years, but it's imminent. take sears from 687 stores, goes through chapter 11 bankruptcy, now has 67 stores open with some of those slated to close by end of year and into the next year.digitaldrummer wrote: ↑Thu Nov 19, 2020 7:56 amok, fair enough, but apparently Ares is not the only investor - they acquired the controlling interest it in 2014 according to this article (and then GC owed THEM a lot of money, i.e. debt). So Bain is not totally out of the picture either. But now there are additional investors as well (the restructuring, and new capital, and potentially more debt - investors expect something in return right?).markjazzbassist wrote: ↑Thu Nov 19, 2020 7:28 amthat's not true. they are owned and controlled by Ares Management now.
https://www.billboard.com/articles/busi ... bankruptcy
also
https://static.guitarcenter.com/static/ ... -13-20.pdf
GC has 269 locations. i wonder how many will be closed within the next few years.
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Re: Guitar Center finally in the cross-hairs?
Sounds like e a complete clusterfuck...
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Re: Guitar Center finally in the cross-hairs?
Next you’ll tell me “Lion King” isn’t real...
Harumph!
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Re: Guitar Center finally in the cross-hairs?
was in there the other day, couldn't believe how slim their guitar amp selection has gotten
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