October 26, 2020 I Finance
Guitar Center Preparing For Possible Bankruptcy Filing
Guitar Center is preparing to file for bankruptcy potentially as early as November, according to an article in The New York Times. The company missed a payment of approximately $45 million in October, leading to a 30-day grace period.
According to the article, Guitar Center reached out to creditors to discuss filing for bankruptcy and emerging from it early next year.
In April, Guitar Center missed payments on two bonds. It quickly made those payments, avoiding default, then announced a settlement exchange offer. In September, the company reported a sales surge tied to the coronavirus quarantine, particularly in acoustic and electric guitars, guitar amplifiers, keyboards, recording equipment and software.