Guitar Center looks to be going down the tubes

[Steve]

==> 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.

 

[Gandalfe]

Most of us have predicted the demise of this establishment, cobbled together with a crushing debt load. But still they marshall on. It's painful to watch.

 

[pete]

Kind of a shame because they sometimes had great prices on used gear.

 

[JfW]

I had the opportunity to witness the death of the Sportsman Warehouse east of the Rockies. They didn't even bother to transfer stock to the existing stores out West as they just kept dropping prices up to 10% off the original per day until it all dried up. I scored some good shoes that final week, half-off! Store closing vs deep discounts...the best and worst of times?

I've never been in a Guitar Center (or once, maybe?), but poking around the usual forums, blogs and channels for guitar stuff the overwhelming consensus seems to be that GC is simply the worst retail environment anywhere. I have never heard any retailer run down by its enthusiast market as much as I have heard the guitar community express disdain for CG. I particularly keep hearing about snooty salesmen wannabe musicians and obnoxious wannabe 'regulars' who hang out there.

 

[Gandalfe]

I hafta admit, it was nice to be able to stop in and pick up a vocal mic cable or some such on a moment's notice. Chances are that's gonna be harder to do once GC goes the way of Blockbuster.

 

[saxhound]

I hafta admit, it was nice to be able to stop in and pick up a vocal mic cable or some such on a moment's notice. Chances are that's gonna be harder to do once GC goes the way of Blockbuster.

That was handy, but with Amazon Prime, it's not too hard to get something quickly if you need it. I'm partial to Monoprice and Audiopile. Monoprice is actually an Amazon third party vendor, but you pay more through Amazon than going direct. Audiopile cables are the bomb. Really high quality for a reasonable price. Where else can you find a 50 foot quad XLR cable for under $30?

 

[JfW]

If you're in a hurry, Amazon Prime can manage Same Day delivery on a number of items depending on what area you are in and what you order.

 

[Gandalfe]

I am addicted to Amazon, so right you are.

 

[Steve]

Amazon is killing off a lot of retail establishments separate from the music industry.

If you check Amazon (at least the stuff I check) I've found their prices higher than I can get elsewhere or even locally sometimes.
To me, and many others, it's all about convenience.

During Holidays it's really handy. No need to fight for a parking space. Just a click away.

The last few guitar things I've bought I checked on Amazon and just bought locally.

Guitar Center is another one of those large stores that push prices down and hurt the smaller and mid sized shops in the area.
Marshall's Music in my area had to find their niche with GC around and provide some competing setups (separate room to store and test guitars, etc).

Back in the day when MailOrder first started it helped one on a budget to get something better than they could in a retail store.
Now, with all the big "10%" above cost shops like GC the big online places like Amazon are eating their cake too while adding convenience. Something stores cannot complete well against although Walmart is entering the fray more heavily after buying Jet.com

With all these online marketplaces I still like going *INTO* a store and browsing. The one thing a picture cannot do is relay the quality when something is in your hand. So I've perused through GC many times. Matter of fact my son wants a new guitar so I've been strolling around to the local guitar places checking them out.

Though the latest guitar amp I want is the same price at Amazon as the local stores. Just free shipping (Prime) ... so convenience or keep the local GC going ?