Guitar Center files for bankruptcy
Guitar Center filed for Chapter 11 bankruptcy on Saturday, with CEO Ron Japinga saying this is "an important and positive step in our process to significantly reduce our debt."
Based in California, Guitar Center opened in 1959, and is the largest musical instrument store in the U.S. The company, which has more than 13,000 employees, said it will keep all 510 of its stores open through the holidays.
Guitar Center declared in court documents that it was on "extraordinarily sound footing" before the pandemic, and its sales dropped primarily because of stores having to close due to the coronavirus. Company officials said Guitar Center has more than $1.3 billion in debt, and under a reorganization plan, that number will be reduced by nearly $800 million, CBS News reports.
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Several major retailers have filed for bankruptcy protection amid the pandemic, including Neiman Marcus, Hertz, and J.C. Penney.
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Catherine Garcia has worked as a senior writer at The Week since 2014. Her writing and reporting have appeared in Entertainment Weekly, The New York Times, Wirecutter, NBC News and "The Book of Jezebel," among others. She's a graduate of the University of Redlands and the Columbia University Graduate School of Journalism.
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