Guitar Center, reseller of musical instruments, files for bankruptcy

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Guitar Center has around 300 locations across the United States and said it plans to continue providing services to its customers in its stores and on its website.

WASHINGTON – Guitar Center filed for Chapter 11 bankruptcy on Saturday as the coronavirus pandemic upsets another business.

The country’s largest musical instrument retailer tried to survive during the pandemic, but was forced to close many of its stores in March when the nationwide shutdown. He struggled to get customers to buy instruments as unemployment fell and the economy struggled.

The company said in its filing that it would receive up to $ 165 million in new equity investments to recapitalize the company and reduce its debt by nearly $ 800 million.

“This is an important and positive step in our process to significantly reduce our debt and improve our ability to reinvest in our business to support long-term growth,” Guitar Center CEO Ron Japinga said in A press release.

Guitar Center has around 300 locations across the United States and said it plans to continue providing services to its customers in its stores and on its website. The company added that it will keep its call centers and social media pages during the bankruptcy process.

“Throughout this process, we will continue to serve our customers and fulfill our mission of bringing more music to the world,” Japinga said. “Given the strong support from our lenders and creditors, we expect to complete the process before the end of this year.

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Guitar Center has stated that all merchandise credits, prepaid lessons, rentals, gift cards, deposits, orders, funding and guarantees will always be honored.

Guitar Center has filed for bankruptcy in the United States Bankruptcy Court for the Eastern District of Virginia.

Other large companies that have filed for bankruptcy amid the pandemic include several clothing vendors like Brooks Brothers, Neiman Marcus and JC Penney. Restaurant chains that have also filed for bankruptcy, including the US arm of Le Pain Quotidien, CEC Entertainment, Chuck E. Cheese’s parent company, California Pizza Kitchen, Sizzler and Ruby Tuesday.

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