The Guitar Center has officially filed for bankruptcy, the New York Times reported. The company filed, according to the Times, on Saturday evening (November 21) in the US bankruptcy court of the Eastern District of Virginia. The Guitar Center will continue to pay employees in bankruptcy. Read the full report here.
The threat of the Guitar Center filing for bankruptcy was reported by the Times and Bloomberg last month. The company faced financial stress after being forced to temporarily close most of its physical locations earlier this year due to the COVID-19 pandemic. At one point, 75 percent of Guitar Center stores in the United States were closed.
According to a statement posted on Businesswire, the Guitar Center "will continue to meet its financial obligations to suppliers, suppliers and employees and intends to make payments to these parties in full without interruption in the normal course of business."
"This is an important and positive step in our process to significantly reduce our debt and improve our ability to invest in our business to support long-term growth," said Ron Japinga, CEO of Guitar Center, in the statement . “During this process, we will continue to serve our customers and fulfill our mission to bring more music to the world. With strong support from our lenders and creditors, we expect the process to be completed before the end of this year. “You can find the full explanation here.