Guitar Center Expects to File for Bankruptcy After Debt Plan
- Chapter 11 filing could come as soon as this weekend
- Retailer is under a 30-day grace period after skipped payment
Photographer: Jemal Countess/Getty Images
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Guitar Center Inc., the largest musical instrument retailer in the U.S., said it expected to file for bankruptcy after reaching an agreement to restructure its debt.
The plan will include as much as $165 million in new equity investments from funds managed by its private equity owner Ares Management, as well as the Carlyle Group and Brigade Capital Management, the company said in a statement Friday. It also aims to reduce debt by almost $800 million -- it will get $375 million in financing from certain existing noteholders and lenders, and $335 million in new senior secured notes.