Guitar Center, the largest nationwide retailer of musical instruments, is reportedly close to filing for bankruptcy.
Per The New York Times, “The retailer missed an interest payment of roughly $45 million earlier this month, setting off a 30-day grace period that could end in default.
NYT also notes, “[Guitar Center] has reached out to creditors to discuss a plan that would involve the company filing for bankruptcy this year and emerging from it in early 2021.”
The retailer was in a similar situation in April when they skipped an interest payment, but they avoided bankruptcy “with a distressed debt exchange,” which resulted in a downgrade to Guitar Center’s credit rating. Guitar Center has yet to publically comment on this new report.
If Guitar Center were to file for bankruptcy, they’d join fellow nationwide retailers J.C. Penney, J. Crew and Neiman Marcus who were forced to seek financial protections due to the coronavirus pandemic.