Guitar Center, which like many retailers struggled during the COVID-19 pandemic, filed for bankruptcy in an attempt to reduce its $ 800 million debt.
The California-based musical instrument retailer plans to keep its stores open, including its Hobart location at 2108 E. 80th Ave. The Music Hypermarket across from Southlake Mall has long been a destination for musicians in Northwest Indiana.
Guitar Center, the world’s largest musical instrument retailer, has forecast $ 165 million in new equity investment and said the Chapter 13 bankruptcy in Virginia will provide $ 375 million in short-term liquidity.
“This is an important and positive step in our process to significantly reduce our debt and improve our ability to reinvest in our business to support long-term growth,” said Ron Japinga, CEO of Guitar Center. “Throughout this process, we will continue to serve our customers and fulfill our mission of bringing more music to the world. Given the strong support from our lenders and creditors, we plan to complete the process before the end of this year. “
Guitar Center has put in place new financings, including a fund managed by the Private Equity Group of Ares Management Corporation, a fund managed by The Carlyle Group and the new capital investor Brigade Capital Management.