It is currently Mon Mar 16, 2020 10:59 pm

All times are UTC - 7 hours



Post new topic Reply to topic  [ 17 posts ]  Go to page 1, 2  Next
Go to page 1, 2  Next
Author Message
Post subject: Grist for the rumor mill......
Posted: Thu Feb 05, 2015 3:02 pm
Offline
Rock Icon
Rock Icon
User avatar

Joined: Wed Mar 31, 2010 12:48 am
Posts: 26417
Location: Tombstone Territory
Looks like the honeymoon may be over......

http://www.ericgarland.co/2015/02/03/end-guitar-center/

Arjay

_________________
"Here's why reliability is job one: A great sounding amp that breaks down goes from being a favorite piece of gear to a useless piece of crap in less time than it takes to read this sentence." -- BRUCE ZINKY


Top
Profile
Fender Play Winter Sale 2020
Post subject: Re: Grist for the rumor mill......
Posted: Thu Feb 05, 2015 4:10 pm
Offline
Rock Star
Rock Star
User avatar

Joined: Sun Sep 08, 2013 8:50 pm
Posts: 4602
Location: ˚ɷ˚
It doesn't help if every GC store is profitable when the debt to the vulture capitalists is so high that you have to be even more profitable just to cover the interests. And now principal payments start in earnest too.

And, let's not forget, GC is Fender's largest debtor - if GC topples, Fender will lose a lot of money. Which they need to pay off one of the same vulture capitalists that pumped up GCs debts. It does not bode well for the future of FMIC. No matter what happens, I'm sure the brand Fender survives, but under whose ownership, and in what direction?


Top
Profile
Post subject: Re: Grist for the rumor mill......
Posted: Thu Feb 05, 2015 4:39 pm
Offline
Professional Musician
Professional Musician
User avatar

Joined: Tue Jun 12, 2007 4:18 pm
Posts: 1921
Location: Upstate, NY
It's so strange to look at FMIC now. It resembles CBS more than it does where it started. Hopefully whatever happens the people who build these instruments make out okay. Because they do good work. I personally haven't cared for most of the direction Fender has been going recently. I think a smaller company that focuses on making quality Fender instruments instead of a giant corporation that tries to be everything to everyone would be the way forward that would make the most sense. However, that isn't what gives the people at the top fat paychecks. Cut and run management is always bad for the customer and the employees. Time will tell.

_________________
http://www.reverbnation.com/casanovafrankensteinandthevoodoomachine
https://www.facebook.com/CFandtheVM

2012 Fender Custom Shop 55 Precision Bass
2012 Fender American Vintage 57 Precision Bass RI
2014 Fender Super Bassman and Bassman 100T/410 Neo


Top
Profile
Post subject: Re: Grist for the rumor mill......
Posted: Thu Feb 05, 2015 5:00 pm
Offline
Professional Musician
Professional Musician
User avatar

Joined: Tue Jun 12, 2007 4:18 pm
Posts: 1921
Location: Upstate, NY
Though I will say that this guy either spent way too much time being taught "economics" in a community college or just has no grasp about what he is talking about in regards to how the economy works. He goes on about how economic crisis' were caused by "unregulated" banks, and that people and banks caused the housing bubble and that things need to be controlled. When it's actually the fact that government control exists is what creates the existence of large corporations, banks and the use of the violence of the state is what corrupts how a natural market works. If anyone looks at the economy and thinks it needs more government violence they're a mental deficient.

_________________
http://www.reverbnation.com/casanovafrankensteinandthevoodoomachine
https://www.facebook.com/CFandtheVM

2012 Fender Custom Shop 55 Precision Bass
2012 Fender American Vintage 57 Precision Bass RI
2014 Fender Super Bassman and Bassman 100T/410 Neo


Top
Profile
Post subject: Re: Grist for the rumor mill......
Posted: Thu Feb 05, 2015 5:48 pm
Offline
Aspiring Musician
Aspiring Musician

Joined: Sat Apr 20, 2013 12:22 pm
Posts: 718
I have never been in a Guitar Center store, so I have no firsthand knowledge of how they operate, but I have seen many negative posts about them on this forum.

However, I find It hard to take seriously any analyst that starts out using terms like “infected by private equity during a national trend of greed and reckless expansionism…” and “…symbol of everything dysfunctional about American corporate finance, management, and retail in the modern age” and then “lost their moral compass”, all in the first paragraph. These are not analytical terms; they are emotional terms that are used to gen up anger in emotionally driven people. Anyone who uses terms like these does not want to get to the bottom of the issue; they just want to make themselves look good.

What comes through to me is, this guy desperately wants to be the smartest person in the room. It doesn’t take a rocket scientist to figure out Guitar Center is in trouble and may fail in a crappie economy. I especially like the way he acts like big retail corporations going down the tubes is something new, ever heard of Sears, Montgomery Ward, and J.C. Penny’s, Woolworths?

So, if they go down it will suck for a lot of people, but their billions in sales will not just disappear, they will go to someone else. Be honest, are you going to stop buying guitars and gear just because they go out of business?

_________________
You can't have too many guitars!


Top
Profile
Post subject: Re: Grist for the rumor mill......
Posted: Thu Feb 05, 2015 6:24 pm
Online
Rock Icon
Rock Icon
User avatar

Joined: Thu Jan 29, 2009 7:13 pm
Posts: 19025
Location: Illinois, USA
Arjay, a chilling bite of reality there and this addendum " GUITAR CENTER’S REAL PROBLEM: THEIR CUSTOMERS ARE BROKE" put frost on the icicle. I can't say that I enjoyed reading either of those, but, thanks for taking the time to post the unhappy news. Here is hope that FMIC stays private and becomes more profitable by doing what they do best, making guitars and amplifiers that are the musical best for their customers who are also the best musicians IMHO.

_________________
you can save the world with your guitar one love song at a time it's just better, more fun, easier with a fender solid body electric guitar or electric bass guitar.


Top
Profile
Post subject: Re: Grist for the rumor mill......
Posted: Thu Feb 05, 2015 6:42 pm
Offline
Rock Icon
Rock Icon
User avatar

Joined: Wed Mar 31, 2010 12:48 am
Posts: 26417
Location: Tombstone Territory
Don't forget, SBLS......it's merely a rumor at this point and yet to be substantiated by anyone that I'd consider as "credible". If I see something regarding this in Forbes or the WSJ only then would I take the report seriously.

Time will tell......

Arjay

_________________
"Here's why reliability is job one: A great sounding amp that breaks down goes from being a favorite piece of gear to a useless piece of crap in less time than it takes to read this sentence." -- BRUCE ZINKY


Top
Profile
Post subject: Re: Grist for the rumor mill......
Posted: Thu Feb 05, 2015 7:14 pm
Offline
Professional Musician
Professional Musician

Joined: Tue Sep 11, 2012 2:14 pm
Posts: 2561
It's unsubstantiated, but I heard about this 10 mos. ago.

GC simply leveraged itself and the tipping point may have already passed. The author certainly thinks so.

This Country was built on leverage... nothing wrong with it. In fact, there were times when J.P. Morgan even bailed out the US Government.

But, a major difference between Now and Then is the broad Public Ownership of Corporate America (Public Stock). Unlike Henry Ford who created the $5 workday fully knowing he'd lose money for 5 years (at which point his workers would be able to buy a car, quadrupling Henry's fortune), Shareholders think only in the short term of quarterly or annual return. Corporate Management too is now blind to long-term strategies because their salaries and bonus structures are now tied so closely to Share Price.

It is interesting though that Fender just recently began Direct Sales to the Public. Could be they've also caught wind of GC's troubles, and are trying to preempt the Blow.

Stay Tuned...

cheers!

_________________
Image

'11 FSR Am. Vtg. Ltd. Ed. CAR '57 Stratocaster (SN# LE02639)
'14 American Deluxe Ash Stratocaster
'12 Telebration Empress Telecaster
'99 Deluxe Nashville Telecaster
'12 FSR Telecaster HH
'10 Heritage H-535
'99 Martin DC-1E
'13 Lanikai Tenor Ukulele


Top
Profile
Post subject: Re: Grist for the rumor mill......
Posted: Thu Feb 05, 2015 7:19 pm
Offline
Professional Musician
Professional Musician
User avatar

Joined: Tue Jun 12, 2007 4:18 pm
Posts: 1921
Location: Upstate, NY
All I know is. If this presents an opportunity for me to scoop up some high end Fender basses they have in stock. I will be more than happy to take advantage of it.

_________________
http://www.reverbnation.com/casanovafrankensteinandthevoodoomachine
https://www.facebook.com/CFandtheVM

2012 Fender Custom Shop 55 Precision Bass
2012 Fender American Vintage 57 Precision Bass RI
2014 Fender Super Bassman and Bassman 100T/410 Neo


Top
Profile
Post subject: Re: Grist for the rumor mill......
Posted: Thu Feb 05, 2015 7:55 pm
Online
Rock Icon
Rock Icon
User avatar

Joined: Thu Jan 29, 2009 7:13 pm
Posts: 19025
Location: Illinois, USA
TheKingofPain wrote:
All I know is. If this presents an opportunity for me to scoop up some high end Fender basses they have in stock. I will be more than happy to take advantage of it.

TKOP, :lol: !

Thanks for reminding me that it is a rumor, I hope it all works out ok.

_________________
you can save the world with your guitar one love song at a time it's just better, more fun, easier with a fender solid body electric guitar or electric bass guitar.


Top
Profile
Post subject: Re: Grist for the rumor mill......
Posted: Thu Feb 05, 2015 10:41 pm
Offline
Rock Icon
Rock Icon
User avatar

Joined: Tue Jun 29, 2010 1:20 pm
Posts: 9640
Location: Indiana
Considering that several of these same type of articles have been "blogged" over the past five years, and GC is still around, I'm not buying it.....again.

Hey, if the articles continue to be written for the next 20 years, maybe someone is bound to be right, eventually. :roll:

_________________
---> "The amp should be SWITCHED OFF AND UNPLUGGED before you do this!" <---

Por favor, disculpe mi español, no se llega a la práctica con mucha frecuencia.


Top
Profile
Post subject: Re: Grist for the rumor mill......
Posted: Thu Feb 05, 2015 10:42 pm
Offline
Rock Icon
Rock Icon
User avatar

Joined: Wed Mar 31, 2010 12:48 am
Posts: 26417
Location: Tombstone Territory
I'm sure everything will be 'okay' -- eventually.

But there is in fact a financial "influenza" that now permeates the entire global corporate structure.

And as Confucius once opined......

"It is often necessary to first choke a sick dog in order to administer the medicine."

Arjay

_________________
"Here's why reliability is job one: A great sounding amp that breaks down goes from being a favorite piece of gear to a useless piece of crap in less time than it takes to read this sentence." -- BRUCE ZINKY


Top
Profile
Post subject: Re: Grist for the rumor mill......
Posted: Thu Feb 05, 2015 10:45 pm
Offline
Rock Icon
Rock Icon
User avatar

Joined: Tue Jun 29, 2010 1:20 pm
Posts: 9640
Location: Indiana
Absolutely. Globalism sucksass! :x

_________________
---> "The amp should be SWITCHED OFF AND UNPLUGGED before you do this!" <---

Por favor, disculpe mi español, no se llega a la práctica con mucha frecuencia.


Top
Profile
Post subject: Re: Grist for the rumor mill......
Posted: Fri Feb 06, 2015 8:31 am
Offline
Rock Star
Rock Star
User avatar

Joined: Sun Dec 21, 2008 8:29 am
Posts: 4238
Location: Pgh Pa
You can see this happening at the GC here by there lack of inventory. Lots of inexpensive stuff and few of the more better instruments. Amps are dismal and parts are very few. I went in for a set of locking tuners and they didnt have any for a Gibson.

The internet I sure is killing alot of places. Most people buy without trying because the stores dont carry what they want. I have no love for GC and it wont bother me to see them go. Just to add to this is the majority of the people that work there have no idea what they are talking about.


Top
Profile
Post subject: Re: Grist for the rumor mill......
Posted: Fri Feb 06, 2015 8:44 am
Offline
Professional Musician
Professional Musician
User avatar

Joined: Sat Jan 29, 2011 6:10 pm
Posts: 2261
Location: Elay
I think this guy is going to be right about GC. Like GM, if you have more debt than customers, it's going to topple sooner or later. So far they've been playing funny money to keep open.
I know the local GC to me is more like a Guitar Palace than a music store. I think they are stuck with so much overhead, that they will never see the light at the end of the tunnel. Too long of a tunnel at this point.
I figure that the shell of the company will get sold as it's biggest asset, and another group with better business sense will continue to run a pared down GC chain. I bet the guys at Sam Ash have bubbly already chilled.

_________________
'10 American Deluxe HSS Sunset Metallic
'10 JA-90 Thinline Telecaster
'15 Music Man JP-15 Blueberry Burst
'07 Les Paul Standard Faded LCPG #82
'14 Carvin ST300
'12 Carvin CS424S
'66 Guild Starfire IV w/Bigsby
'14 Warmouth Partscaster Daphne Blue


Top
Profile
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 17 posts ]  Go to page 1, 2  Next
Go to page 1, 2  Next

All times are UTC - 7 hours

Fender Play Winter Sale 2020

Who is online

Users browsing this forum: Solid Body Love Songs and 2 guests


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum

Search for:
Jump to: