A detail of a "Made in USA" Fender Telecaster model electric guitar is pictured in Rome, Italy August 15, 2018. REUTERS/Max Rossi
(Reuters) - Guitar Center Inc, the largest U.S. retailer of music instruments and equipment, filed for Chapter 11 bankruptcy on Saturday, as music lovers moved their shopping online during the coronavirus pandemic.
The retailer has negotiated to have a total of $375 million in debtor-in-possession financing from its existing lenders and intends to raise $335 million in new senior secured notes, the company said refini.tv/3fpM2UC in a statement.
Earlier this month the company reached a restructuring agreement with key stakeholders that includes debt reduction by nearly $800 million and new equity investments of up to $165 million to recapitalize the company.
The company in a court filing said it has between $1 billion and $10 billion of both assets and liabilities.
Guitar Center, which owns nearly 300 stores across the country, said business operations will continue without any interruption.
Milbank LLP served as legal counsel, BRG served as restructuring advisor, and Houlihan Lokey was financial advisor to the company.
Guitar Center began in 1959 as a store selling home organs in Hollywood.
The company filed for Chapter 11 bankruptcy in the United States Bankruptcy Court of the Eastern District of Virginia.
uninsane on November 22nd, 2020 at 14:32 UTC »
“Guitar Center began in 1959 as a store selling home organs in Hollywood”
I guess Home Organ Center didn’t sound as good?
smoresporno on November 22nd, 2020 at 12:52 UTC »
Glad they came in and shut down any local music shops in my area before this.
WagonsNeedLoveToo on November 22nd, 2020 at 12:00 UTC »
Geez our local guitar center just opened this summer. Very interested to see what comes of this.