Brookfield Instrument Retailer To File For Bankruptcy Protection

BROOKFIELD,WI —Guitar Center, retailer of musical instruments, lessons, repairs and rentals, announced plans to file for Chapter 11 bankruptcy protection. With nearly 300 stores across the U.S., including a Brookfield location, Guitar Center has helped people make music for more than 50 years, according to the retailer's website.

Guitar Center announced an agreement to reduce debt and provide significant financing to support its business plan. The agreement provides that all financial obligations to key investors, stakeholders and lenders will be paid in full, the news release said.

Ron Japinga, CEO of Guitar Center, said in a news release:

“Today we announced a very important and positive step forward to ensure the long-term financial strength of Guitar Center. This agreement will allow us to significantly reduce our debt and reinvest in our business in order to better serve our customers and deliver on our mission of putting more music in the world.

With ten consecutive quarters of growth prior to the impact from COVID-19, we have been pleased with our resilient financial performance during these challenging times created by the pandemic.

As a result of this financial restructuring process, we will be better equipped to execute on and
invest in our strategic growth initiatives and we will continue delivering through the strength of
our brands, availability of our stores, customer-focused associate relationships, innovative
music education programs and our expanding digital solutions.”

The restructuring agreement is intended to allow Guitar Center and its related brands (including Music & Arts, Musician’s Friend, Woodwind Brasswind and AVDG) to continue to operate.

Guitar Center will continue to provide service to its customers. All merchandise credits, prepaid lessons, rentals, gift cards, deposits, orders, financing and warranties will be honored.

To implement the financial restructuring plan, Guitar Center expects to file voluntary petitions for reorganization pursuant to Chapter 11 in the United States Bankruptcy Court, the release said.