Guitar Center files for bankruptcy

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Jeff Romard

Administrator
Staff member
ODJT Supporter
Sep 4, 2006
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Sydney, Nova Scotia
I think we all seen this coming but it's now official...

The 61-year-old company -- the biggest musical instrument retailer in the United States -- had tried to stay afloat during the coronavirus pandemic by offering virtual music lessons. But Guitar Center was forced to close many of its stores in March during nationwide lockdowns, and it struggled to get customers to buy instruments as the economy headed south.

 

DJ Ricky B

DJ Extraordinaire
Mar 9, 2015
6,519
4,768
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Any Retailer in the Music and DJ Equipment sales industry is going to see big declines, and most are going to be in serious trouble.

Almost all of the band members that I know who use to live life on the fringe and just earn money doing all these bar shows have all been forced to go get jobs with Amazon for the season. One guy hadn't worked a W2 job in 3 years! Lots of DJs across the country retiring.

Dow hit 30,000. The great Melt up on the Dow is occurring before the big Crash. Congress can't get anywhere on a stimulus package and help for everyone.

Wait until after abysmal Xmas sales numbers come in, and all the retailers who owe months of rent end up closing up in January.
 

MIXMASTERMACHOM

DJ Extraordinaire
Oct 16, 2011
11,085
1,444
62
Any Retailer in the Music and DJ Equipment sales industry is going to see big declines, and most are going to be in serious trouble.

Almost all of the band members that I know who use to live life on the fringe and just earn money doing all these bar shows have all been forced to go get jobs with Amazon for the season. One guy hadn't worked a W2 job in 3 years! Lots of DJs across the country retiring.

Dow hit 30,000. The great Melt up on the Dow is occurring before the big Crash. Congress can't get anywhere on a stimulus package and help for everyone.

Wait until after abysmal Xmas sales numbers come in, and all the retailers who owe months of rent end up closing up in January.
Sad to say but you could be right.
 

Jeff Romard

Administrator
Staff member
ODJT Supporter
Sep 4, 2006
19,532
16,626
50
Sydney, Nova Scotia
Any Retailer in the Music and DJ Equipment sales industry is going to see big declines, and most are going to be in serious trouble.

Almost all of the band members that I know who use to live life on the fringe and just earn money doing all these bar shows have all been forced to go get jobs with Amazon for the season. One guy hadn't worked a W2 job in 3 years! Lots of DJs across the country retiring.

Dow hit 30,000. The great Melt up on the Dow is occurring before the big Crash. Congress can't get anywhere on a stimulus package and help for everyone.

Wait until after abysmal Xmas sales numbers come in, and all the retailers who owe months of rent end up closing up in January.
I think GC was seriously overextended before the shutdowns to the point even a small drop in business would do this to them. Razor margins kill. I'm told Long and McQuade up here in Canada is doing OK through the whole thing. Of course they are down but they aren't going out anytime soon. They are very similar to GC

The Dow is such a poor reflection of the economy. At best about 55% have money in the market and many of them are Mutual funds or RRSP (401K) clients. Subtract them it's more like 25-30%
 

IceBurghDJ

DJ Extraordinaire
Apr 17, 2015
3,097
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Western Pennsylvania
iceburghdj.com
Anyone, or business, that sees a 10% drop in revenue has to make changes. If it's 20% it's even worse.

What about 30, 40? What if instead of a steady decline it's sudden, and of course, not predicted?

The gov'ner of PA issued an order that NO bar/restaurant can serve an alcoholic drink after 5pm on the wednesday before thanksgiving. THE BIGGEST BAR NIGHT OF THE YEAR!

They can be open for food...but really, who's gonna do that?
And they've been at 50% capacity and 10pm curfew for over half a year now...

God help anyone in the travel/hotel/convention biz, rental cars, etc.

I bet gas stations are feeling it too, perhaps tire companies, etc - fewer working, more working from home means a lot less demand for all this.

Daycare?

And then of course retail...which has been suffering for a few years now. With folks staying home, ordering more from home, walmart/others doing online order/delivery it's becoming the new normal...hate to use that term, but I know MANY that LOVE the 'remote' grocery shopping and will not go back to the old way.

i too have become much more 'amazon' likely...why run around, mask on / mask off, they don't have it anyway...just order it and get if off the porch.

The change isn't complete...I see in some tractor forums (idiots) folks asking "my dealer is an hour away. where I can order online?"...dude, call the dealer and have them ship it to you....EVERY business will do this in my experience. I know 4 dealers that do it.
 

MIXMASTERMACHOM

DJ Extraordinaire
Oct 16, 2011
11,085
1,444
62
I knew when Sears went out of business things were seriously a big mess. They used to have a Sears store in Newark and now it's a moving company.