==> http://www.marketwatch.com/story/gu...oncerns-about-companys-debt-burden-2017-04-25
I recall reading about the buyout of Guitar Center and I wondered why they created so much debt.
Seemed unsurmountable for a company to keep having cash flow going to pay off debt. I guess someone really wanted some guitars and now that the collection is complete, probably time to let the whole thing go.
As their "Moody's" rating goes down to a rating close to junk, the interest that they pay on a loan to continue the debt gets higher and higher. And at some point the higher payments chokes all positive cashflow and follows with no paying equipment putchases on time and falling behind, staff cuts, store closures, liquidation sales and total liquidation.
I recall earlier this year Vandoren mouthpieces for sale at Guitar Center, WWBW, Music 123 and other names of the same company. Should be interesting if all the dominoes fall and dissappear.
I still have my mailing flyers from Woodwind, and another flyer from Brasswind before they merged from back in 1982ish. I wish I had money back them, build up my Selmer Paris horn collection for future gigantic valuation.
All that is needed now is a slight downturn in the economy to curb or choke the public's spending habits and all will go fairly quickly.
Maybe they'll spin out WWBW.com and allow them to survive and continue on.
I recall reading about the buyout of Guitar Center and I wondered why they created so much debt.
Seemed unsurmountable for a company to keep having cash flow going to pay off debt. I guess someone really wanted some guitars and now that the collection is complete, probably time to let the whole thing go.
As their "Moody's" rating goes down to a rating close to junk, the interest that they pay on a loan to continue the debt gets higher and higher. And at some point the higher payments chokes all positive cashflow and follows with no paying equipment putchases on time and falling behind, staff cuts, store closures, liquidation sales and total liquidation.
I recall earlier this year Vandoren mouthpieces for sale at Guitar Center, WWBW, Music 123 and other names of the same company. Should be interesting if all the dominoes fall and dissappear.
I still have my mailing flyers from Woodwind, and another flyer from Brasswind before they merged from back in 1982ish. I wish I had money back them, build up my Selmer Paris horn collection for future gigantic valuation.
All that is needed now is a slight downturn in the economy to curb or choke the public's spending habits and all will go fairly quickly.
Maybe they'll spin out WWBW.com and allow them to survive and continue on.