Guitar center is going under!

#41
I really hope they don't go down. They are a good resource for gear I can't wait for on line, and I was able to get a killer deal on a used GK RB400 a couple months ago. If they go down, there will be no tangible music store within an hour of my residence. Extra strings, a patch cable, picks, little things I need but don't want to order and wait for. And if they close, there won't be small shops opening back up to fill the void because those days are done.

So I wish them the best of luck. Our craft is a dying breed, and I hate the fact the businesses that support it are going under.
 
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#42
PillO said:
Please explain how buying a business and forcing it into bankruptcy - either chapter 7 or chapter 11 - is a strategy for making super-economic profits. That really is not clear to me.

Bain Private Equity (which is the arm that holds GC) has about 70 investee companies. It is in the interest of Bain to make those companies more valuable then sell them on to others, not crush them into liquidation. But if a company is failing, it is in Bain's interest not to throw good money after bad. So a failing company will not garner any additional investment. Perhaps that is what you mean?
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You need to ask the people at Bain. I do not know why they do this. It's not my business, it's theirs.
 
#45
PillO said:
Please explain how buying a business and forcing it into bankruptcy - either chapter 7 or chapter 11 - is a strategy for making super-economic profits. That really is not clear to me.

Bain Private Equity (which is the arm that holds GC) has about 70 investee companies. It is in the interest of Bain to make those companies more valuable then sell them on to others, not crush them into liquidation. But if a company is failing, it is in Bain's interest not to throw good money after bad. So a failing company will not garner any additional investment. Perhaps that is what you mean?
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Depends on how much you buy it for.
 
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#46
Wesley R said:
Several quick thoughts:
1. At one time (maybe the law has changed) when a business filed for chapter (whatever I forget the number), the companies that provided them a line of credit legally had to extend the same amount of credit to the bankrupt company. I am certain there were many provisions with the legal speak, yet that was the reality.
2. It is like the economy pick a side, it will get better or it will get worse. Wait long enough and you will be right.
3. Most failing or struggling businesses get bought by someone who believes they can run it better.
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Naw. The so called investors suck them dry and part them off, making tons more money than they lost in the first place. This came up about 5 years ago on a very large stage, and that’s all I’m going to say about that or it will probably violate rules of the forum. I do check GC’s used section a lot though. Some nice deals pop up from time to time.
 
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#51
hsp-sandiego said:
Guitar Center owns Music & Arts, LMI, Giardinelli, Musician.com, Private Reserve Guitars, Woodwind and Brasswind, Music 123, LiveWire cables... I am sure there is a default strategy as opposed to "closing their doors." They should consider "demo centers" and sell mostly online as their stores are typically a substantial Sq. Ft. space.
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Seriously, I’d pay a $49/year membership to go and demo stuff, if they actually carried a range of equipment and had staff that knew what gear fit the sound/feel you were looking for.

Frenchy-Lefty said:
Guitar Center or not, true or not, I don't think we should rejoice about a brick and mortar music instrument store closing. Where are we going to try the gear we buy online?
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Already not at GC. They never carry anything I want, except for strings.
 
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#52
guitar center 420576_350361271664308_2098668115_n.jpg
 
#56
TheMaynorD said:
The only benefit to a guitar center or any brick and mortar music store now that sweetwater, musician's friend, etc. are available is to actually get your hands on an instrument or piece of equipment and play it before you buy it or for emergency issues like strings the day before a show. And for the bedroom warriors to go and shred the same 5 rock songs on the most expensive guitar then leave without buying anything. Don't get me wrong, I have definitely played on basses I have no intention of buying, but I usually try and pick up some strings or something and not just sit there for 2 hours on that 1967 P bass only to noodle.
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Not quite the only benefit. If I'm unsure if I will keep something, I'll order from GC online (rather than Sweetwater) because I can return it without paying return shipping.
 
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#57
two fingers said:
Mom n pop stores carrying gear you can afford at good prices will not come back if GC goes under. Period.

Two good friends of mine own a mom n pop. They started out carrying nicer gear and providing great customer service. These days, live music gear is almost an annoyance to them. The only things that sell are entry level pieces and they only sell them to people who have money burning a hole in their pocket and can't wait 48 hours for an internet order to arrive for 15% less than they have to charge. Their profits come from church, school and commercial PA installs as well as band and orchestra rentals and maintenance contracts. They make virtually nothing on the kinds of gear we here at TB frequently use. They honestly wish they could drop all of that stuff but it creates foot traffic. Guy comes in for a new microphone for his church and you sell him a new PA install. Guy comes in for guitar strings and you sell his band a new compact PA system. That's the only thing basses and guitars and amps are good for in their world. Starter packs this time of year makes them about $12 a pop. Hardly worth stocking the 30 or 40 they will stock. But they do it hoping this young guitar players come back and buy a PA in 5 years or their mother signs their sister up for a flute rental.

The nearest GC is 75 miles away. What kills the market for them now is the interwebz.

I'm not beating up the interwebz or cryijng for mom n pop stores either. I like the free market just the way it is. Some survive and some don't. But their competing for our business always works out for us in the long run. It wouldn't hurt my feelings at all to see Fender Pro Player and Rumble stuff in Sam's Club for a hundy less than GC sold it for. D'addario XL Nickels and Chromes for $9.95 a set on the shelf at Wal-Mart? Sign me up!

I don't need a dear old friend with a smile and a cup of coffee waiting on me when I go to buy a bag of orange picks and a Fast Fret. I don't have time for the coffee anyway. :D
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I agree. We have two shops here in a town of 35 thousand, they are both over priced for the type of stuff I'd be interested in, plus they don't carry much. Plus everything I buy from GC is taxed, why would I use them when I can order from Sweetwater tax free?
 
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#59
Well...I went to Guitar Center yesterday to pick up some bass strings before practice. I stood there for 10 full minutes without anyone at the register ringing me out. I asked three different employees if there was someone who could ring me up and they all said "There's no one at the register? I'll go find him..." I had to bug the guy at the 'Lessons' counter to come ring me up at the register, AND, he seemed annoyed at me because of it...

Go shag yourself Country Club Hills Guitar Center. You suck, your business model sucks, your employees suck.

There are NO mom and pop shops near me though because of the poopie show that is GC.
 
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