GC Reportedly Preparing for Possible Bankruptcy Filing

It’s being widely reported that Guitar Center (GC) is preparing to file for a potential bankruptcy. According to The New York Times, the nation’s largest retailer of musical instruments missed an interest payment of $45 million earlier this month, setting off a 30-day grace period that could end in default. The company is now said to be discussing with creditors a plan which could involve filing for bankruptcy this year and exiting from it in early 2021.

This past May, Guitar Center announced that it had completed a series of transactions to address its April 2020 debt payments. In July GC successfully exchanged over $56 billion in bonds due in 2022.