GC Responds to Reports of Ares Management Takeover from Bain

In a February 28, 2014 article in The Wall Street Journal, the publication reported that, “Ares Management LLC, which owns the majority of the music retailer's debt, is in advanced discussions with Guitar Center owner Bain Capital to take over the company.” The report went on to say that “people familiar with the matter” claimed that, “Under the terms being discussed, Bain would keep a minority stake in the company.”

Reached for comment, Christopher Bennett, GC vice president communications & corporate affairs, responded with the following:

“This is just part of an old story that seems to pop up once or twice a year. We weren’t surprised by the story, and of course, we’re not interested in commenting on speculation and rumours. What I can tell you is that we were disappointed with any suggestions about bankruptcy considerations. It’s absurd to use language like that without citing any credible source, and given our current liquidity position and the interests of our investors, we don't believe that event is even a remote possibility."