Elias Graves
Common misfit
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Official Guitar Center Going Out Of Business Doomsday Clock Thread
- Thread starter Elias Graves
- Start date
IamSeaDevil
WTF? FTW!
Is put of business the same as out of business?
Elias Graves
Common misfit
Almost.
bluesnapper
hot like yo' valves
Interestingly, over here in ye olde UK, large guitar megastores are taking over. Huge places that offer used, new and price-matched online sales. Isn't that what GC does?
A few good independent music shops still exist, but a lot are closing or merging together. London's Denmark Street is still a good place to go (actually its probably better now than it was several years ago), but I think most of the 'independent' shops down there are all owned by a one or two companies.
The new breed of large guitar store over here does seem to have learnt a little though from the plight of GC - for the time being anyway. Most guitars are well set-up and looked after, staff are fairly knowledgeable and prices are kept as low as possible. It's great to be able to go and check out so much gear under one roof - my local independent's range of higher-end acoustics is confined to two shop-soiled D18s that look like they've been hanging there for ten years.
A few good independent music shops still exist, but a lot are closing or merging together. London's Denmark Street is still a good place to go (actually its probably better now than it was several years ago), but I think most of the 'independent' shops down there are all owned by a one or two companies.
The new breed of large guitar store over here does seem to have learnt a little though from the plight of GC - for the time being anyway. Most guitars are well set-up and looked after, staff are fairly knowledgeable and prices are kept as low as possible. It's great to be able to go and check out so much gear under one roof - my local independent's range of higher-end acoustics is confined to two shop-soiled D18s that look like they've been hanging there for ten years.
BuzzBaloo
Kick Henry Jackassowski
bluesnapper, all that consolidation and "growth of the big box store" happened in the US in the '90's, before the rise of internet commerce. People liked being able to walk into a large store with a huge selection and shop around like it was a little theme park. Smaller stores, even ones that offer significantly lower prices (as was in my area), typically sold out instead of competing.
Now, the "big box" chains are hemorrhaging money because they have large parcels of land with large mortgages or high-footage rents, plus they have to keep a massive inventory in each store (stores pay taxes and insurance on any inventory in stock on New Years Day), staffs, and overhead. But they are competing with on-line stores that can offer even lower prices and an even wider selection with centralized warehouses, inventory that can be ordered on demand (or dropped shipped), and that don't have to collect sales tax. So, some big box chains like GC and Best Buy (electronics) are facing extinction and others, like the powerhouse Wal-Mart, are falling from grace with potential problems on the horizon.
As for the numbers involved with GC, this sums it up well...
http://thetoneking.com/wp/life-support-how-long-until-they-pull-the-plug-on-guitar-center/
Now, the "big box" chains are hemorrhaging money because they have large parcels of land with large mortgages or high-footage rents, plus they have to keep a massive inventory in each store (stores pay taxes and insurance on any inventory in stock on New Years Day), staffs, and overhead. But they are competing with on-line stores that can offer even lower prices and an even wider selection with centralized warehouses, inventory that can be ordered on demand (or dropped shipped), and that don't have to collect sales tax. So, some big box chains like GC and Best Buy (electronics) are facing extinction and others, like the powerhouse Wal-Mart, are falling from grace with potential problems on the horizon.
As for the numbers involved with GC, this sums it up well...
http://thetoneking.com/wp/life-support-how-long-until-they-pull-the-plug-on-guitar-center/
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Elias Graves
Common misfit
The Crusher
The non chosen one!
Organ doaner center maybe! I went to GC! (I know throw stone at me now) as much as I hate to go there, sometimes they have some great used deals, I mean steals....like 29.00 on a new/in store used Neutrik patch bay, and 49.00 on a new/in store used Furman Power Conditioner with LED's for the pull out lights and the lights for the power meter and a nice goose neck light in the rear for lighting up the back side of you rack. They shit part was when I asked them about patch cable for my patch bay they tried to sell me cables for daisy chaining stomp boxes together at 8.49ea because they don't have the other type anymore.....REALLY!
HOWEVER, the place was abandoned with no customers and really no stock, they have dwindled down to virtually no stock of anything, they are clearing out all of their Mesa Boogie stuff (no biggy to me, do not like). But the really have nothing but bits and pieces and have removed shelving and the guitar wall has become guitar corner. The drum room is still nice as hell though. The sound room is still packed. They are really blowing stuff out 36ch mackie board with the big power supply 500.00 they have a flight case for it as well, but they wnt 300 for that and the most GC is allowed to give for ANY type of case is 10.00, so don't ever give more than 20.00, just a little tid bit from a buddy of mine that worked there for a month. Boy did I get some deals that month! WOOHOO!
Stick a fork in them beotches they be done!
HOWEVER, the place was abandoned with no customers and really no stock, they have dwindled down to virtually no stock of anything, they are clearing out all of their Mesa Boogie stuff (no biggy to me, do not like). But the really have nothing but bits and pieces and have removed shelving and the guitar wall has become guitar corner. The drum room is still nice as hell though. The sound room is still packed. They are really blowing stuff out 36ch mackie board with the big power supply 500.00 they have a flight case for it as well, but they wnt 300 for that and the most GC is allowed to give for ANY type of case is 10.00, so don't ever give more than 20.00, just a little tid bit from a buddy of mine that worked there for a month. Boy did I get some deals that month! WOOHOO!
Stick a fork in them beotches they be done!
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Denverdave
Resident Ragamuffin
While I am no fan of GC generally, if they go under it will be hard to find a lot of guitars in person to try out.
IamSeaDevil
WTF? FTW!
I forgot about that
Help!I'maRock!
Mediocringly Derivative
That's ok. A bunch of companies may also go under because of unpaid orders.
Elias Graves
Common misfit
With their debt in the BILLIONS of $$$, there may be a few manufacturer's hurting.
The danger of having all your eggs in one basket. Gibson in particular has been busy shutting down their independent dealers in favor of the big boxes and online dealers. GC is the only Gibson dealer left in okc.
The danger of having all your eggs in one basket. Gibson in particular has been busy shutting down their independent dealers in favor of the big boxes and online dealers. GC is the only Gibson dealer left in okc.
Virtual Pariah
Kick Henry Jackassowski
Is the debt coming due today?
Help!I'maRock!
Mediocringly Derivative
Whenever, it's not soon enough.
fused
Improvisationalist
Yup and even though I own some very nice vintage Gibsons, I will not miss GC. And if Gibson was go greedy as to dump small ma and pa shops for GC... Then ya sow what ya reap.... In which case, see ya Gibson.... Won't miss you either... I got mine!
Virtual Pariah
Kick Henry Jackassowski
With the economy the way it is, I don't think I have enough hate for GC to be happy to see that many people layed off.
It won't be just GC. Fender, ESP, Gibson, and their subs will have to lay off people to maintain profitability.
Bad news all around.
Help!I'maRock!
Mediocringly Derivative
As mentioned, I expect a few manufacturers to go out of business if it happens. Personally, I don't care about "the economy". It's cyclical and this will be another transformational moment in how the industry does business.
BuzzBaloo
Kick Henry Jackassowski
I don't know.
But I think I heard a little while back they had managed to put off the balloon interest payment.
As the old saying goes, if you owe the bank $1,000 and can't pay, it's your problem; if you owe the bank $1 million and can't pay, its the bank's problem. But I fail to see any way they can succesully survive long-term, especially since their plan is to spend more money building more stores.
mystixboi1
Kick Henry Jackassowski
I noticed that too
