guitar center news

I don't totally understand that but it doesn't look that great. FOlks have been saying that GC has been in trouble for years though :shrug:
 
It basically means they will have to borrow more than they are worth to continue operating beyond 2013.
 
This, they have large interest payments due on their corporate bonds beginning in 2013.
 
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They are opening up the 5th one in our area this Thursday. :rolleyes:
 
I imagine musical instrument sales take a hit during a recession. I bet a very small percentage of their sales are to pros, and most people just are not buying gear like the old days. Just a guess on my part, but for most people, a musical instrument is not a necessity. My local GC seemed to have been trying to get more of the low end market, with them only having a few USA strats and Gibsons, and a ton of lower end stuff. This, in turn, moves the higher end clients to the web to the big independent guys who actually set up guitars and make their money serving a more pro level segment. Add to that the fact that Chinese direct sales and super discounters can undercut brand name stuff, and your business pretty much evaporates. Heck, even parents who want to buy their kid a cheap guitar can get it online, or from walmart, target, best buy, etc.
 
Yikes. Sounds bleak. Maybe the last few years' expansion wasn't as great an idea as they thought.

I wonder how MF is doing, by comparison. Surely a lot better.
 
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