Things aren’t looking good for Guitar Center.
The company 59 years in the making has established itself over the years as one of the go-to places for all things music. However, it seems the company is now in serious financial trouble.
This week the company was knocked down to a “CCC” by leading rating agency S&P. It’s a sign that Guitar Center is at risk of bankruptcy. The classification was “narrowly averted” through an emergency loan renegotiation, reportedly upward of $615 million.
Currently, the storefront remains the largest instrument retailer in the US, with 280 locations sprawled across the states. There’s no telling how long it will last with the decline in sales — especially that of guitars. Even leading brand Gibson is struggling, so there must be a correlation here.
What once thrived with a rock n’ roll focus, however, has branched out to accommodate for nearly every other genre. Even DJ equipment and lighting can be purchased at your local Guitar Center.
Will it be enough to save the company after years of dominating the market? We sure hope so…
Source: Digital Music News