Guitar Center Files for Bankruptcy
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variety.comJem Aswad Senior Music EditorAs expected, Guitar Center, the largest musical-instrument retailer in the U.S. and a mecca for musicians, filed for bankruptcy protection late Saturday night, according to the New York Times.
The company, which missed a $45 million bond-interest payment last month, has around $1.3 billion in debt and has been deeply impacted by the coronavirus pandemic.The company entered Chapter 11 restructuring proceedings in the U.S.
Bankruptcy Court of the Eastern District of Virginia, and said in an announcement that it will continue to pay its vendors and employees in full.
It said it has reached an agreement with creditors on a plan that would reduce its debt by $800 million, and has secured new financing.
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