Guitar Center Mulls Restructuring With Creditors Taking Control
- Music retailer was hit by store closures, online competition
- Company is in ongoing, private discussions with debt holders
Photographer: Valerie Macon/AFP via Getty Images
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Guitar Center Inc., the largest musical instrument retailer in the U.S., is considering options including bankruptcy to manage its debt load after it skipped bond interest payments this month.
The chain is in active talks with its creditors about reconstructing its debts which could see certain holders take control of the company, according to people with knowledge of the situation. Guitar Center is also considering alternatives similar to a refinancing deal it reached in April after some of its stores were temporarily shut to stem the spread of Covid-19, the people said.