Was just reading another forum and there was mention that Guitar Center and it's sister companies like MF and Music 123 may not be in business by the end of the year. This is not good, not only for getting deals on music gear, but not good in our economy. Man, they maybe filing bankruptcy like the cirucit city, Mervyns and Sharper Image...all the well known retails....you all remember Tower Records???


Not good at all if this is true, and would also explain the near empty shelves in guitar center. Did you all notice a drop in Guitar Center's Guitar supplies at the retail stores?

http://www.strat-talk.com/forum/sidewinders-bar-grille/13696-guitar-center-financial-danger.html



Quote taken from CNN.

http://money.cnn.com/2009/05/22/news/economy/retail_creditrisk/index.htm?postversion=2009052211

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http://www.youtube.com/user/gmlasam

This all depends on what Bain capital decides to do since they own Guitar Center since October of 2007 when stock holders received a payment of 63.00 a share GC was puchased for just over 2 billion. Bain also owns Burger King, Toys R us, Warner Music , Drug mart, Burlington coats , Dunkin Brands, Staples, ect.ect ect. They have investment in over two hundred companies.many they own outright as soul owners. The interesting part who is Bain Capital well its Mitt Romney yes the one that ran for president and Massachusetts Governor he started the company in 1984 with three other men. I beleive I last read the Bain is worth about 65 Billion dollars. These guys are business men if its not making money you can bet they will turn a profit taking it apart.

And yes its true that MF, Music123, Music Arts Center,Woodwind and Brasswind which was bought when they went bankrupt a few years ago are all GC They are run in seperate manner which is for tax reasons but they do move inventory between the group. It also helps with purchases for people in some states because you don't pay tax if the business does not have a location within the state you are. If I order from GC I have to pay tax because the have stores here but not if I buy from MF or one of the others.

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The strongest reason for the people to retain the right to keep and bear arms is, as a last resort, to protect themselves against tyranny in government.

Thomas Jefferson

Shades of Mars Music.

When you don't see the stores well-stocked and everything is on "back order" it means that their suppliers have cut them off for failure to make payment on earlier purchases. Death spiral. When Mars filed for bankruptcy they tried to go Chapter 11 and work their way out of it by restructuring debt, but their creditors didn't buy it and they wound up in Chapter 7. They sold everything to the walls.

I would guess that if Guitar Center has to file for bankruptcy they will try to put together a plan based on surviving as a web-based business, as they have that covered pretty well. I don't imagine that there are any good music stores in Atomic City, Idaho.

I must admit that I am among those that will look at big items at GC and then buy at my local music store, which is a bit further away. Why? Better prices.

If they do file and have to liquidate, don't get too greedy. The longer you hold out for a lower price, the more likely it is that somebody else will get it first.

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James Burton Upgrade Telecaster
Hot Rodded Am Fat Strat Texas Special (now featuring Kinman Traditional II pickups)
Fender Blues Jr.
SWR California Blonde
Pedals Pedals Pedals

I would sure be sorry to see Guitar Center go. The small music stores in my area are lame to the max and can not manage a consistent stock of guitar strings. It is a about a 30 mile drive (one way) for me to GC and it is still worth it with two small independants within 5 miles...

I realize how much people have had to depend on GC if they want to play a guitar in person before buying, and then buy it at a reasonable price. If you are anywhere near the Washington , DC area then you can go to Chuck Levin's Washington Music Center in Wheaton, MD. I shop all over the place but I buy at Chuck's. They have everything. Everything. And the prices at least match or beat the internet. When Mars Music was driving DC area local music shops out of business, Chucks didn't even hiccup.

I know that there are some New York City stores that people like as well, but I don't go up there.

So if GC were to go under, others would be ready to fill the vacuum. People aren't going to stop wanting guitars. The purchasing power may go down in a recession, but it won't go away.

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James Burton Upgrade Telecaster
Hot Rodded Am Fat Strat Texas Special (now featuring Kinman Traditional II pickups)
Fender Blues Jr.
SWR California Blonde
Pedals Pedals Pedals

Bingo! CV nails it!!!

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Being able to play and enjoy music is a gift that's often taken for granted.

Don't leave home without it!

It may be that they's just close the retail outlet Guitar Center but keep all of their online businesses open.

As you can see, even with very little competition against Guitar Center Inc. (GC Inc. comprises GC Retail and MF, M123, WWBW etc online operations) MF has been offering blow out pricing just to raise capitol and increase cash flow. Profit margins have been cut to raise cash.

MF recently sold a road worn strat for 499 and a 330 Rickenbacker for 999 and Jaguar HH for 299. Lots of word of mouth phone only sales.

This is really hurting the other online businesses I suspect. The guy who may have bought a road worn from Sweetwater or ZZounds bought it from MF solely based on an incredible price. Most of the online places have not been willing to meet MF's blow out pricng.

I keep seeing this rumor surface on various guitar forums, but I have yet to see a single story in the business press about GC being in any kind of trouble. WHich you would if they were. So I figure they're not.

This is all news to me. I guess we'll see if any of it is true.

Keep an eye out for store closures and/or layoffs.

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Member #26797
My other guitar is a Strat.

Thank God. I hate that place.

Here in St Louis it would really suck if GC went down...There is no other place around town that even comes close to there prices..All the smaller independent places are way high on there pricing...At the independent stores you can count on a MIM standard strat starting at $530 at guitar center there $450..As far as pedals and such goes at the smaller places you can count on paying real close to list price...
I know in other cities there are great independent music stores just not here in St Louis....So guitar center is our only choice ..

Most of the independant shops around me are decent on prices. You can always talk down the mom and pop shops. The difference is that the mom and pop shops want your business and they arnt run by young kids that dont know anything about guitars, or a business model.