The Guitar Center has 269 seats, many of which are in malls that fought long before Covid-19. Pedestrian traffic in malls has plummeted, and stores like Guitar Center, which depend on people shopping on their own, are among the hardest hit this year.
In the bankruptcy case, the company said it had received up to $ 1
The main owner of the company, Ares Management Corporation, as well as the new capital investor Brigade Capital Management and a fund managed by The Carlyle Group, will help finance Guitar Center through bankruptcy.
“This is an important and positive step in our process to significantly reduce our debt and strengthen our ability to reinvest in our business to support long-term growth,” Guitar Center CEO Ron Japing said in a statement.
“We will continue to serve our customers and fulfill our mission to offer more music in the world,” Japinga said. He added that the company expects to complete the process by the end of the year.