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Guitar Center, the largest musical instrument retailer in the US, has filed for bankruptcy.
The company announced Saturday it was entering the Chapter 11 restructuring process, during which it’ll stay in business. Guitar Center said it expects to finish up the process by the end of the year.
Like other physical retailers, Guitar Center has felt the negative impacts of consumers’ increasing reliance on e-commerce, as well as the forced closures of many of its stores during the coronavirus pandemic.
Guitar Center, the largest retailer for musical instruments in the US, is the latest company to file for bankruptcy in the wake of the coronavirus pandemic.The retailer announced Saturday it had filed for Chapter 11 bankruptcy protection “to significantly reduce our debt and enhance our ability to reinvest in our business.” Guitar Center aims to emerge from bankruptcy before the end of the year, the company said.The possibility of Guitar Center’s bankruptcy filing was first reported in October by Bloomberg.
According to the company’s bankruptcy filings, Guitar Center has been forced to seek protection in part due to “the economic upheaval created by the persistence of the Covid-19 pandemic.” The company also faces a “significant debt burden” standing at roughly $1.3 …
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