Guitar Center bankruptcy possibly looming

Discussion in 'V.C.'s Parlor' started by strat81, Oct 24, 2020.

  1. danzigdan

    danzigdan Squier-Nut

    717
    Feb 10, 2014
    WNY
    They are over leveraged with debt. I stopped in to look at something recently and pick up strings and I'd say their new and used guitar inventory was about 50% or less than usual.
    It will be sad if they completely go under because the temptation to surf the used items daily is too great. I think they will still be around but they may have to re-configure their business model yet again.
     
    fattboyzz and Kenneth Mountain like this.
  2. wildelectric

    wildelectric Squier-Nut

    795
    Sep 23, 2016
    Western Illinois
    I agree. I believe there's just too much history and market power left in their name for the business, in some form or another, to go away completely.

    Continually being sold off to one predatory "alternative" investment management firm or another in order to remain in business also isn't terribly sustainable, in my observation.
     
    Kenneth Mountain likes this.
  3. Tconroy

    Tconroy Squier-holic

    Age:
    61
    Sep 11, 2015
    kansas city mo
    I buy most all my strings and things there but never any guitars Except a used one I just bought yesterday and I hope it gets to my local G.C. so I can go get it hopefully by friday. I just hope it makes it here without any damage! The store is only 5 minutes away from where I work. I had it shipped to the store so if anything is wrong with it I am not going to accept it.
     
    Kenneth Mountain likes this.
  4. Tconroy

    Tconroy Squier-holic

    Age:
    61
    Sep 11, 2015
    kansas city mo
    Just checked my order status and the order was cancelled!!!! They said it sold before they could take the sight down so I lost out. Thats sucks!!! I am for sure only buying my strings from them!!!
     
    Kenneth Mountain likes this.
  5. archetype

    archetype Squier-holic

    They don't appear to have real-time inventory status on used items, which is a big minus to buyers.
     
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  6. strat81

    strat81 Squier-Meister Platinum Supporting Member

    Age:
    39
    349
    May 27, 2020
    Nebraska
    Yeah, it's not like that technology has existed for what, 25 years? 30?
     
  7. njteleman

    njteleman New Member

    Age:
    63
    2
    Mar 19, 2020
    nj
    Just the age old problem of having too much bad debt.
     
    Kenneth Mountain likes this.
  8. Benlostforyears

    Benlostforyears Squier Talker

    Age:
    35
    88
    Aug 17, 2020
    Western NC
    I'm sure they'll do just like so many other companies... they will close most of their brick and mortar stores and focus primarily online sales. Hopefully they will keep up their used inventory because I depend on their employees underpricing gear they identified wrong.
     
  9. Bob the builder

    Bob the builder Squier-Meister

    Age:
    60
    463
    Feb 25, 2017
    Rhode Island USA
    They made over $2 billion last year
    They missed a $45million payment?
    WTF
     
    Kenneth Mountain likes this.
  10. archetype

    archetype Squier-holic

    $2 Billion would have been revenue, not profit. Subtract operating costs for 300+ stores and the online operation and, yeah... they can't come up with a $45 Million payment.
     
  11. Anacharsis

    Anacharsis Squier-Meister Platinum Supporting Member

    107
    Aug 31, 2019
    United States
    Indeed, revenue isn't profit. They are not flush with cash.
     
  12. wildelectric

    wildelectric Squier-Nut

    795
    Sep 23, 2016
    Western Illinois
    Exactly.

    This, in a nutshell, is why I groan inside every time someone believes that I must be rolling in the dough from owning my own business.

    I absolutely am, no doubt about it... before overhead.
     
    Last edited: Oct 28, 2020
  13. gary mitchell

    gary mitchell Squier-Nut

    Age:
    69
    904
    Aug 23, 2019
    Texas
    I don't like Guitar Center after they lost my bass. I had to find it myself. Long story. I buy everything from Sweetwater Music, and get it in 3 or 4 days, I have enough guitars to play I can wait the 3 are 4 days,
     
    drewcp and Forum Guest like this.
  14. Forum Guest

    Forum Guest Squier-Meister

    418
    Jan 22, 2019
    United States
    Their biggest value to me is the fact that they’ve got so much more inventory than my local mom and pop shop.

    I’ll usually pop in there to browse and kick the tires, and if my M&P shop doesn’t have it, they can order it.

    Edit: Ahhh just thought of a 2nd thing I really like about them... gift cards there make my holiday shopping for my father-in-law who lives out of state MUCH easier...
     
    speelyei likes this.
  15. gary mitchell

    gary mitchell Squier-Nut

    Age:
    69
    904
    Aug 23, 2019
    Texas
    A couple of years ago I had a brand new MIM Jazz bass with active electronics. Well the pickups quit and wouldn't make sound, but it was under warranty. I didn't buy it from them but they said that didn't make know difference they are a Fender dealer., they said they would take care of it. I got it back and the pickups quit again. I took it back and again they said they take care of it. Well this time they had over a month then 2 month they kept telling me we will get to it. Finally one of the salesmen there told me he couldn't find it. They had been lying to me all this time. They told me I could get a new bass I said know I bought this one because of the unusual grain of the wood and I had bonded with it at that time. Another month went buy know bass, then they told me at the time I brought it they had know one to work on it. So I got on the phone myself and tried to find it. I called the store in San Antone, and ask one of the clerk there if they had it, he went in the back and then He said we have a bass here with know paper work on it. I ask him to describe to me it was my bass. He said they getting ready to put it on the floor to sale. I told he would have gotten it back the pickups don't work. Any way I got it back took it home and I put pickups in it I put EMG JV52s in it and it sounded very good. But I sold it to pay my wife hospital bill. AND THATS WHY I DOD'T LIKE GUITAR CENTER. If they had told me the truth it might had been different.
     
    drewcp likes this.
  16. Uncle Joe

    Uncle Joe Squier-holic

    Age:
    58
    Dec 18, 2015
    Jersey
    Edit: Replied to wrong post. oops.
    You can keep saying it a million times and a growing percentage still won't grasp the concept. Especially coming from someone who's likely "a CEO". Man, is that a loaded and misunderstood title. Don't think so? Ask the guy who owns the carwash down the street.

    As for Guitar Center, if I read the article correctly the other day the missed 45MM payment is for INTEREST on the debt. Yikes. Chapter 11 certainly is looming if that's the case.
     
    Last edited: Oct 30, 2020
    drewcp, archetype and wildelectric like this.
  17. archetype

    archetype Squier-holic

    Correct. Not counting contracting gigs in healthcare IT, I'm on my fourth business. Owning a business is like taking a vow of poverty, no matter how much revenue you turn.
     
    wildelectric likes this.
  18. wildelectric

    wildelectric Squier-Nut

    795
    Sep 23, 2016
    Western Illinois
    Me to anyone who's ever remarked how great it must be to be your own boss, run the show as you see fit, no owners to siphon off most of the money you earn, etc.:

    "Oh, so owning a business as your means of income sounds cool... being your own boss and all that... sounds like something you'd want to do?

    Okay then - try it some time."
     
  19. TedW1945

    TedW1945 Squier Talker

    Age:
    75
    3
    Dec 7, 2019
    Norfolk
    Remember the old business adage: Turnover is vanity, profit is sanity but cash is reality.
     
  20. TedW1945

    TedW1945 Squier Talker

    Age:
    75
    3
    Dec 7, 2019
    Norfolk