Guitar Center may be filing for bankruptcy

[bigolsparky 770]

I quit Guitar Center over a year ago.  Some of their suppliers should feel the affect of this.  Especially the ones who have made the decision to not be bothered by the mom and pop shops. 

[velorush 5,301]

Trade creditors generally are made whole in Chapter 11, though it can take a while. We waited around a year for settlement in the Windstream bankruptcy and seems like around that back when FairPoint filed (these are large telephone carriers/ISPs to whom we sell and do installation work).

Trade creditors just have to be diligent to get their claims documented and filed on time, then comes the waiting during the court wrangling. 

It’s the bond holders that get absolutely screwed in these “restructurings.”  Bond holders being your 401k and other institutional investors for the most part.

Given we’ve been discussing their looming bankruptcy for many years, I can’t imagine the effective coupon rate they’ve been getting over the past, say, five years, but it won’t have been enough to make up for the bonds just going away.

[kizanski 13,990]

6 hours ago, Tortious said:

Bam.

I found it humorous that they began the communication with "Dear Tortious..."

[LucSulla 5,933]

12 hours ago, Tortious said:

It also aims to reduce debt by almost $800 million

Damn, and I thought I was a little too fast and loose with PayPal Credit. 

[crunchee 5,215]

I didn't notice it so much this last week, but I got up early today and have seen several GC ads on basic cable TV this morning already.  Lots of Holiday ads on TV now too, apparently there's craploads of money being spent on promotion, as this is the first big Winter Holiday season since The Virus made it's presence known early in 2020.