After months of speculation, Guitar Center, the largest musical instrument retailer in the United States, declared "Chapter 11" on November 13. Guitar Center negotiated with creditors to reduce approximately $800 million debt toward solvency. Additionally, $165 million in equity capital will be invested by private equity firms Ares Management, Brigade Capital Management and Carlyle Group, and it is expected that Guitar Center will pay their suppliers in full.
CEO Ron Japinga notes that Guitar Center was steadily growing sales before the COVID pandemic hit. Though independent retailers may disagree, the survival of Guitar Center, with their nationwide promotional activities raising awareness of music products, will be a plus for the US music industry.
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